The Globe and Mail reports in its Wednesday, July 5, edition that Canaccord
Genuity Group on Monday launched a special
purpose acquisition corporation
(SPAC) meant to pave the way for
small Canadian companies to go
public.
The Globe's Andrew Willis writes that Canaccord is
attempting to raise $30-million
for a SPAC that would acquire an interest in a private company valued
at $50-million to $250-million.
This SPAC is meant to be a
substitute for an initial public offering,
as in recent years, IPOs
have proved difficult for relatively
small private companies that
are attempting to raise less than
$100-million.
If this concept is
successful, Canaccord
plans to roll out additional SPACs
of similar size. Canaccord is not
targeting a specific industry or
region with this SPAC -- the strategy
is to simply find a private
business that would benefit from
being a public company. The
investment bank is investing
$2.5-million of its own capital in
the SPAC and selling units at $3
each.
Separately, veteran private-equity
investor Daniel Klass and former
CIBC executive Jill Denham
joined Monday to launch a
$90-million tech-focused SPAC
called Software Platform Partners.
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