• Large "Not So Blind" Pools Come to Canada - Rules Relating to SPACs Adopted by the TSX
  • October 9, 2009 | Authors: Dyana E. McLellan; Alfred L. J. Page
  • Law Firm: Borden Ladner Gervais LLP - Toronto Office
  • Entities looking to raise capital in the Canadian capital markets now have an alternative to the restrictive rules and low maximum capital limits of the TSX Venture Exchange's Capital Pool Company regime and the more formal, high minimum capital threshold of the traditional initial public offering route. Shell companies with nothing more than non-binding letters of intent are now able to carry out initial public offerings (IPOs) in Canada to raise a minimum of C$30 million. On December 19, 2008 the Toronto Stock Exchange (TSX) adopted Part X - Special Purpose Acquisition Corporations of the TSX Company Manual (Part X) to provide a framework for the listing of special purpose acquisition corporations, or SPACs, on the TSX.