Joseph Vigneault & The Capital Pool Company Program

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 to $5,000,000 price range. A boutique investment bank introduced them to the features of the Capital Pool Company (CPC) program. Vigneault must decide if a CPC is an option he and his partners should consider. He must consider the effect on their ownership stake in the company and calculate the return on their investment.

The case is focused on the quantitative and qualitative decision factors that go into deciding how to finance a new business venture and exposes students to the unique CPC program offered by the TSX Venture Exchange.