Joseph Vigneault & The Capital Pool Company Program
(4 pages of text)
Case (Gen Exp)
Joseph Vigneault and his entrepreneurial partners wanted to raise $500,000 to pursue a new venture through the purchase of a currently existing company in the $4,000,000-5,000,000 price range. A boutique investment bank introduced them to the features of the Capital Pool Company (CPC) program. Vigneault needed to decide if a CPC was an option that he and his partners should consider. He needed to consider the effect on their ownership stake in the company and calculate the return on their investment.
This case is focused on the quantitative and qualitative decision factors that go into deciding how to finance a new business venture. It exposes students to the unique CPC program offered by the TSX Venture Exchange in Canada. They will learn the steps required to set up a CPC, how a CPC raises capital and completes an initial public offering, how it purchases a business, and how the CPC becomes a regular TSX-V-listed stock. Students are given the opportunity to analyze a potential deal by entrepreneurs using the CPC program and calculate the share dilution and returns for entrepreneurs.
Finance and Insurance
Canada, Small, 2009
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