NEO Unveils the G-Corp: The Next-Generation Publicly Traded Acquisition Corporation
An innovative capital-raising solution focused on earlier stage growth companies with an enterprise value between $50 million and $500 million
Toronto | April 16, 2021 – The NEO Exchange (“NEO”) is excited to announce the pilot program launch of a new publicly traded acquisition corporation, the Growth Acquisition Corporation™ (“G-Corp™”). This new go-public vehicle enables earlier stage growth companies to access capital and go public with significantly reduced risks in comparison with other public listing strategies.
In Canada and abroad, NEO is widely recognized as the Canadian stock exchange for companies and investment products driving the innovation economy, with over 120 corporate and ETF listings. NEO has also established itself as the leading Canadian venue for Special Purpose Acquisition Corporations (“SPACs”), with 10 SPAC listings to-date that cumulatively raised over C$2.4 billion and a robust pipeline of new SPAC listings. Building on these achievements and with a laser focus on providing companies with innovative ways to raise capital, it is a natural evolution for NEO to launch a new publicly traded acquisition corporation tailored to the needs of the vast Canadian universe of earlier stage growth companies set to become the blue chip companies of tomorrow.
Designed by NEO and in consultation with the Canadian securities regulators, the G-Corp addresses a gap in the capital markets for acquisition corporations. While venture exchanges currently offer go-public shells tailored for junior companies, and SPACs are typically geared towards large growth companies, the G-Corp addresses the needs of earlier stage companies that aspire to list on a Tier 1 stock exchange.
“Quality private companies with an enterprise value between $50M and $500M represent a phenomenal opportunity for investors and the Canadian economy as a whole,” noted Jos Schmitt, President & CEO of NEO. “The G-Corp is a game-changing solution to turn that opportunity into reality. It is also a product of our relentless efforts to put Canadian capital markets at the forefront of innovation in such a way that benefits investors and capital-raising companies.”
The structure of the G-Corp leverages the existing structure of NEO’s successful SPAC program and ensures a rigorous review process and investor protection to deliver quality transactions. In addition to offering a compelling opportunity for high-potential growth companies to access public capital, the experienced go-public teams behind each G-Corp will provide the support needed to successfully complete a transaction between these growth companies and investors.
A number of early adopters are already engaged in the process of listing the first G-Corps on NEO, including Canaccord Genuity and Wildeboer Dellelce LLP.
“We congratulate NEO for expanding its offering in support of a larger pool of entrepreneurs and growing businesses,” commented Michael Shuh, Managing Director and Head of Structured Finance at Canaccord Genuity. “This new listing vehicle augments the opportunities available to support the increased demand by high-potential growth companies to access the public markets.”
“As one of Canada’s premier business transactions law firms, Wildeboer Dellelce is always at the forefront of innovation that enables growth companies,” remarked Perry Dellelce, Managing Partner of Wildeboer Dellelce LLP. “The G-Corp is a big win for growth companies and investors, and the Canadian capital markets in general. We are excited to be involved from the outset.”
The NEO Exchange is home to over 120 corporate and ETF listings, and consistently facilitates close to 15 percent of all Canadian trading volume. Click here for a complete view of all NEO-listed securities.
For more information on the NEO G-Corp, click here.
About the NEO Exchange
The NEO Exchange is Canada’s innovation economy stock exchange that brings together investors and capital raisers within a fair, liquid, efficient, and service-oriented environment. Fully operational since June 2015, NEO puts investors first and provides access to trading across all Canadian-listed securities on a level playing field. NEO is a Tier 1 stock exchange and only lists senior companies and investment products seeking a stock exchange that enables investor trust, quality liquidity, and broad awareness including unfettered access to market data.
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