Using BVP Canadian Capital Pool Companies

BVP's Capital Pool Company (CPC) is an investment vehicle for early stage growth companies looking at going public as a means to obtain venture capital. CPC's are unique public investment vehicles with cash as their only significant asset, that are required to complete the acquisition of a business or asset(s) which allow the CPC to meet the minimum listing requirements of the TSX Venture Exchange.

BVP will assist its clients make the transition from early stage growth company by helping to match companies seeking additional equity investment with a BVP CPC listed on the TSX Venture Exchange.

BVP utilizes their own CPC's for its venture investments and are continually seeking early stage companies which meet the following criteria:

  • Proprietary technology;
     
  • $1 million in annual product revenues;
     
  • high growth potential
     

A BVP CPC is typically capitalized with a minimum of $500,000 of equity, including investment from BVP's partners themselves. BVP may also arrange for additional investment concurrent with the completion of the Qualifying transaction.

 

The Canadian Junior Public Market

BVP's unique strategy of utilizing the Canadian junior public market as a source of venture capital brings investors who understand the investment risks associated with venture investing to our clients. These investors are willing to participate in the funding of an early stage company trading on the TSX Venture Exchange (part of the Toronto Stock Exchange).

Listing on the TSX Venture Exchange is ideal for companies that may not be sufficiently mature to list on a U.S. exchange. Initially, funds may be raised from institutional and retail investors. This enables client companies to create a history of success and generate momentum in the public markets, laying the foundation for a move to NASDAQ.

Because they are listed in Canada, companies can often operate below the radar screens of the American investment bankers and analysts. This allows client companies the opportunity to fine tune their business strategies, refine their plans, augment their management capabilities and develop experience communicating to public shareholders. When the time comes to access capital in the United States, these companies are treated much like a new IPO issue, but with an experienced management team that understands the public markets.