His entrepreneurial partners and Joseph Vigneault wanted to raise $500,000 to pursue a new enterprise through purchasing a running company that is for sale around $4,000,000 to $5,000,000 price range.
An investment bank explained to them the characteristics of the Capital Pool Company (CPC) application. Vigneault needed to decide if a CPC was an option that he and his associates should contemplate. Furthermore, computation of the return on their investment was must and he needed to consider the effect on their ownership position in the company.
Learning Objective: It exposes students to the unique CPC program.
They will learn the steps required to set up CPC a CPC raises capital and complete an initial public offering, how a company is purchased by it, and the CPC becomes a regular TSX-V-listed stock. Pupil are provided the opportunity to examine a possible deal by entrepreneurs, using the CPC program, calculate yields, and the share dilution for entrepreneurs.
Publication Date: 04/08/2011
This is just an excerpt. This case is about Finance
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