In a recent LinkedIn Live session, BLG's lawyers discussed options for U.S. investors and business leaders who are interested in investing or raising capital in Canada.
Melinda Park, a partner in the firm's Securities & Capital Markets group, moderated the session, "What U.S. players need to know about Canadian SPACs and CPCs." Partner Manoj Pundit and Senior Associate Scott Robson, also from the Securities & Capital Markets group, joined Melinda in the engaging discussion.
During the 20-minute conversation, the panel explained the Canadian blind pool concept and its history, how special purpose acquisition companies (SPACs) fit within the Canadian market, and the new G-Corp – a 12-month pilot program that is a hybrid of the SPAC and capital pool company (CPC).
What you need to know:
- There has been significant increased interest in SPACs lately in North America, due in part to social media influence and the emergence of the "Reddit investor"
- The concept of the blind pool has evolved. The CPC and SPAC programs have been in place for several years.
- While a significant percentage of growth and early stage companies go public through the CPC program, there has been a substantial surge in companies choosing to go public through an initial public offering (IPO).
- G-Corp is the new kid on the block. Though it combines aspects of a SPAC and a CPC, it targets a more specific market – mainly midmarket, high-growth companies in the tech space.
- Canada's mature and robust market offers a strong and balanced regulatory framework and the flexibility to find the market structure that works for a company at any stage.
Watch the video from our LinkedIn Live session to learn more about the various means and ways of investing and raising capital in Canada.
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