New And Improved TSX-V Capital Pool Company (CPC) Program Rules Now In Effect

On January 1, 2021, the rules governing the TSX Venture Exchange's capital pool company ("CPC") program were significantly changed and improved for the first time in many years. These changes, which followed an extensive review by the TSX-V and dialogue with market participants, are designed to reduce regulatory burden and provide greater incentives and flexibility in using CPCs in a 'going public' strategy. The key changes to the CPC program rules are highlighted below.

No More 24 Month Deadline to Complete Qualifying Transaction

Formerly, CPCs that failed to complete a Qualifying Transaction within 24 months of listing faced dire consequences in the form of suspension, delisting, or having their listing transferred to the illiquid NEX Board together with the cancellation of certain shares of the CPC held by parties not at arm's-length to the CPC (if approved by their shareholders). Under the new rules, CPCs no longer have any deadline within which to complete