Going Public In Canada - Capital Pool Companies (CPC) and the TSXV
Updated: Jan 21, 2020
The TSX Venture Exchange (the "TSXV") is one of three primary stock exchanges in Canada; focused on emerging or growth companies (whereas its affiliated entity, the Toronto Stock Exchange (TSE), serves Canada's senior equity market). The TSXV was originally formed by a merger of the Vancouver Stock Exchange (VSE) and Alberta Stock Exchange (ASE) that created the Canadian Venture Exchange (CDNX), which was subsequently acquired by the TMX Group Inc. which also operates the TSE. The TSXV is considered a junior or "venture issuer" exchange, generally requiring less comprehensive and costly listing and on-going regulatory compliance more suited such emerging or growth companies.
The TSXV offers a unique listing alternative program referred as the Capital Pool Company (“CPC”) program. The CPC program enables experienced public company directors and officers to form a "shell" company with no assets other than cash and no commercial operations and subsequently raise an initial pool of capital and list the shell company as a CPC on the TSXV. Once listed, the CPC then uses these funds to seek out and acquire an operating business that meets TSXV requirements (referred to as the CPC’s "Qualifying Transaction").
Further details on the TSXV's CPC program can be found here.
Endeavor Law can assist on all aspects of the CPC program including the formation, initial financing and listing of a CPC; to the due diligence, documentation and completion of a Qualifying Transaction (on behalf of either the CPC or the target company). Endeavor Law will always seek to provide competitive pricing for any legal services requested and is pleased to discuss fee arrangements that suit any potential client.
Does not constitute legal or other advice and must not be used as a substitute for legal advice from a qualified legal professional in your jurisdiction who has been fully informed of your specific circumstances. Information may not be up-dated subsequent to its initial publication and may therefore be out of date at the time it is read or viewed. Always consult a qualified legal professional in your jurisdiction.