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Overview of Capital Pool Company process

 From the TSX Venture Exchange's Brochure "Capital Pool Company Program: 

"As the public venture capital marketplace in Canada, TSX Venture Exchange provides growth capital companies with access to capital and offers investors a venture investment market with comprehensive compliance standards. A unique listing vehicle, the Capital Pool Company (CPC) program provides an alternative, two-step introduction to the capital markets. The CPC program introduces investors with financial market experience to entrepreneurs whose growth and development-stage companies require capital and public company management expertise. Unlike a traditional IPO, the CPC program enables seasoned directors and officers to form a “Capital Pool Company” with no assets other than cash and no commercial operations, list it on TSX Venture Exchange, and raise a pool of capital.

The CPC then uses these funds to seek out an investment opportunity in a growing business. Once the CPC has completed its“qualifying transaction” and acquired an operating company that meets Exchange listing requirements, its shares continue tradingas a regular listing on TSX Venture Exchange."

Click  for more information: CPC Brochure - Chinese   TSX CPC Brochure . 

 

posted...September 17, 2010