Our Services
What World Vision Capital primarily does is facilitate M&A transactions for both private and public companies. If you want to sell a business, we’ll help you find a buyer. If you want to grow your business, we can help you find a business to acquire or to merge with.
You may also consider going public through an RTO where your private company takes over a public company or, you merge with a public company. There are significant benefits in going public: you can raise money more readily, you have liquidity if you want to sell stock, and you enjoy a much higher corporate profile. The regulators require “full, true, and plain disclosure”. The reporting requirements may be viewed as not overly demanding given the benefits. You’ll have the possibility of rapid growth by raising increased working capital through public share offerings. And as evidenced by the largest companies in the world, the motivation is: if you want to go big, go public.
Through affiliates, we work with publicly traded Capital Pool Companies (CPCs) listed on the TSXV stock exchange that are looking for a “qualifying transaction”. This is usually a faster, more certain, and less expensive way for private companies to go public versus an IPO. After TSXV approval of the “qualifying transaction” the private company takes over the public CPC. The bigger money can then be raised through an arms length public share offering often through a brokerage firm sponsoring the CPC. Usually about 20% of the shares of the new company are purchased in the public financing which can be very attractive to investors when the qualifying transaction project is exciting, especially when vended into a tightly held CPC where much of the stock is restricted. There would likely be significant demand for the stock in anticipation of rapid share price appreciation.
The private company typically gets about 70% of the new public company shares and gets control of the treasury which at the time of the qualifying transaction is regulatorily capped at up to $10MM. The private company principals get continual guidance throughout the going public process from the CPC principals who have extensive public company experience. It is very much in the interest of the CPC directors that the new public company succeeds because they usually end up owning 5%-10% of the stock. Fully one third of the companies listed on the TSXV started out as CPCs. Many of them inter list graduating to more senior stock exchanges. The program has a strong track record.
We also:
- Working through various lenders, we facilitate loans to individuals and companies
- Through R&D Partners for Canadian companies, we can arrange government loans, startup capital grants, and wage subsidies for employees, and we can get you up to 70% cash back for R&D expenses incurred in Canada through the Scientific Research & Experimental Development (SR&ED) program. For companies that are already working with a SR&ED consultant, we offer a complimentary review of their operations going back up to 18 months to determine if any money has been left on the table which is often the case.
- Working with “Bear Sterns Companies” we facilitate loans against free trading stock.
- Through our affiliate “M&A Worldwide”, with 44 representative offices in 33 countries, we have strong international networking capabilities.
Explore the Path to Public Listing
Consider going public through a reverse takeover (RTO), where your private company acquires a public one, or by merging with a public company. Going public offers significant advantages: easy access to funds, good stock liquidity for potential selling, and heightened corporate visibility.
Regulatory authorities demand consistent and transparent disclosure. Public companies must provide unaudited quarterly financial statements and audited annual financials and promptly report material changes through news releases, both positive and negative. They must conduct yearly general meetings and anticipate higher professional fees. While these requirements seem substantial, their benefits outweigh the burdens.
Going public opens doors to rapid growth by generating increased working capital through public share offerings. The success of the world’s largest companies underscores the motivation: a public listing can help achieve substantial growth.
Leverage Capital Pool Companies
Our approach involves collaborating with affiliated entities to engage with publicly traded capital pool companies (CPCs) listed on the Toronto Stock Exchange (TSX) Venture Exchange. These CPCs actively seek a qualifying transaction, a quicker, more assured, and cost-effective alternative for private companies to achieve public status compared to an initial public offering (IPO).
Following the TSXV’s endorsement of the qualifying transaction and the fulfillment of listing prerequisites, the private company assumes control of the public CPC, accompanied by a name change. Subsequently, substantial capital can be raised through an arms-length public share offering. It is often facilitated by a sponsoring brokerage firm associated with the CPC. Alternatively, the private company principals may opt to source investors independently.
Approximately 20% of the new company’s shares are typically procured through this public financing. This presents an enticing opportunity for investors, particularly when the qualifying transaction project holds promise—especially when introduced into a closely held company with restricted stock. Anticipation of noteworthy and rapid appreciation in stock value can lead to substantial demand for the shares.
Equity Distribution and Guidance
Under this approach, the private company typically secures around 70% of the freshly issued shares of the emerging public entity. This allocation grants the private company a commanding stake while conferring control over the treasury. It is subject to regulatory limits during the qualifying transaction phase, often reaching up to $10 million.
Throughout the public listing journey, the private company benefits from ongoing advisory support provided by CPC principals who bring extensive experience in public companies. The success of the newly established public entity holds considerable significance.
CPC principals commonly retain ownership of approximately 5% to 10% of the stock. Nevertheless, the specifics of each arrangement vary, shaped by the negotiated agreement on shared ownership between the private company and the CPC principals.