Capital Pool Company (TSX Venture)


DEFINITION of 'Capital Pool Company (TSX Venture)'

A new, fledgling company trading on Canada's TSX Venture exchange that has no commercial operations and no assets except for cash. A capital pool company (CPC) uses its cash holdings to evaluate promising businesses or assets that it would acquire in a qualifying transaction, which it has to complete within 24 months of listing. Companies trading as a CPC have a "P" after their ticker symbol. The completion of the qualifying transaction would enable the CPC to list as a standard Tier 1 or Tier 2 issuer on the TSX Venture exchange.

BREAKING DOWN 'Capital Pool Company (TSX Venture)'

A CPC that cannot complete its qualifying transaction within the prescribed time limit of 24 months of listing may be at risk of a trading suspension or delisting from the TSX Venture exchange. A CPC trading on the TSX Venture exchange can be identified by the ".P" added to its trading symbol.

The TSX Venture exchange's CPC program is a unique offering that connects individuals who have financing and directorial experience with entrepreneurs whose early-stage companies need capital and management expertise.

  1. Canadian Securities Institute - ...

    Canada's leading provider of professional credentials and compliance ...
  2. Qualifying Transaction

    A type of transaction that occurs when a company issues public ...
  3. S&P/TSX Composite Index

    The Canadian equivalent to the S&P 500 market index in the ...
  4. Junior Capital Pool - JCP

    A corporate structure whereby companies can issue shares to the ...
  5. Toronto Stock Exchange - TSX

    The largest stock exchange in Canada. The Toronto Stock Exchange ...
  6. TSX Venture Exchange

    Originally called the Canadian Venture Exchange (CDNX), this ...
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