What is a CPC?

A CPC has no ongoing business operation of its own and exists simply to acquire another company. 

A special purpose acquisition company goes public the same way any other company does. However, CPCs are subject to a different set of rules and regulations since they are raising capital in "blank check" format. This is because the use of proceeds raised in their offering will be applied in a transaction that isn't known and can't be described until they have negotiated an acquisition. Investors are trusting management to identify, negotiate and structure a good deal on their behalf.

People create CPCs, bankers raise capital and investors participate because they all believe the publicly listed "shell" can acquire a private company on terms that are very favorable to the special purpose acquisition company shareholders. 

Private companies are attracted to CPC transactions because it provides a faster and easier way to go public, comes with access to investment bankers and it's often easier to raise capital for operating purposes.

CPCs are interested in businesses which will attract institutional investors, capital, talent and trading volume. As a consequence, companies with less traction need to rely on the direct listing process to go public, rather than on a CPC transaction.

All investments have risk and there are additional risks when investing into a shell that has no operating history or stated purpose other than acquiring an undisclosed business. While mannyCPCs have performed well, there's no way to know whether the next one does well. It's very important to read the Risk Factors in any prospectus and consult with professionals before making any investment.

Where are CPCs traded?

CPCs are traded on the TSX-V

CPC is a registered trademark of the TMX Group Limited