Hi Vartan,
I'm Art Johnson with Levesque Securities in Calgary, you are a long ways away. A JCP is a junior capital pool, it was started in the early 80's as a blind pool for resource based companies to list on the exchange, I even helped write alot of the rules, I worked for the Alberta Stock Exchange for six years, basically the idea allows companies to list a "shell" on the exchange and after 18 months acquire a major transaction which completes the company. The seed capital is issued to Alberta investors at .10 cents and the presidents list must consist of 300 Alberta residents, who receive this stock. It has now gone through various changes and all walks of companies use the JCP to list on the exchange, this is done because it is very inexpensive, usually 25 to 45 grand, but you are limits on the amount of money you can raise. In the case of Cybersurf which is a local internet provider they issued the original shares at .10 and they traded the first day anywhere from $1.40 to $1.80, not a bad profit, if you sold. The stock is currently trading at .80 and is looking for a home, the problem with the JCP route for alot of companies is just what Cybersurf experienced, alot of people were buying at higher levels and become extremely upset when stock falls in half, also alot of the firms which do JCP's do not support markets after it is out there, they have an option on 20% of cheap stock and that sells ASAP, so they have made their profit and move on, hope this helps, please contact me when you see something interesting, I will do the same.
Art |
