TSXV Refreshes Its Capital Pool Company Program

Effective January 1, 2021, the TSX Venture Exchange's (TSXV) Capital Pool Company Program (the CPC Program) will undergo several key policy changes (the CPC Amendments), reflecting the first significant update in 10 years.

The CPC Amendments enhance access to capital for Capital Pool Companies (CPCs) and growth-companies alike by increasing the flexibility of the CPC Program while reducing the associated regulatory burden both when the issuer goes public and for the resulting issuer following the qualifying transaction (the Resulting Issuer). 

Background

The CPC Program, with its origins in the junior mining and oil and gas industries, has long been a favoured vehicle for early stage access to public capital, facilitating the growth and development of projects through the CPC's qualifying transaction process. The CPC Program allows seasoned directors and officers to create companies, or CPCs, with no assets (other than cash) and no commercial operations but