Capital Pool Company (TSX Venture)

Just the people you want to call if you want to go swimming in Washington DC. Also, a thing related to Canadian investing.

A capital pool company is a particular type of investment vehicle present on Canadian markets. It's an alternative way to raise capital rather than listing directly on the main exchange.

Here's the process:

First, you form the capital pooling company, or CPC. That involves getting at least two of your friends involved (you need three individuals total). Between the three of you, you have to contribute either $100,000 (Canadian dollars), or 5% of the total amount eventually raised, whichever is more. Then you incorporate the company and issue shares.

Second, you go through a regulatory review and (assuming you pass) some additional preparatory rigmarole. Eventually, the CPC gets listed on the TSX Venture Exchange, which is like the little brother to the Toronto Stock Exchange (the big boy of Canadian equity trading).

La Grande Hoseur.