The decision to go public is a pivotal step that can accelerate growth, enhance credibility, and unlock access to new sources of capital.

Below are some of the most compelling profiles of companies that benefit from public market participation:

1. Scientific and Technological Innovators

You are developing a breakthrough technology or scientific innovation—funded through personal capital, grants, and early-stage investors—but require access to larger institutional and public funding to move from development to commercial scale.

2. Resource Exploration Companies

You operate within mining or resource exploration—sectors that traditionally rely on public markets for financing due to the absence of a robust venture capital ecosystem.

3. Acquisition-Focused Strategies

You have identified one or more acquisition targets that could form the basis of a scalable public company.
Going public provides liquidity, valuation transparency, and access to acquisition capital that can accelerate a roll-up or consolidation strategy.

4. Growth-Stage Operating Businesses

You operate a growing business that requires expansion capital—either to scale operations, enter new markets, or pursue strategic acquisitions.
A public listing can provide the visibility and financing flexibility needed to drive the next phase of growth.

In Summary:
Whether you are an early-stage technology or life sciences company still in development, or an established operator seeking to unlock greater value through capital access and visibility, the Canadian public markets can provide a powerful platform to achieve your strategic and financial goals.

Overview of Go-Public Pathways in Canada

There are several established routes to taking a company public in Canada.
Each option has distinct benefits, costs, and suitability depending on a company’s size, stage, and objectives.
Cyan Capital provides candid guidance on which pathway aligns best with your business strategy.

Pathways

Initial Public Offering (IPO)

An IPO is the most recognized and structured method of going public.
It involves working with an underwriter or investment bank to distribute shares to the public and typically requires significant legal, financial, and regulatory preparation.

Advantages:

  • High credibility and visibility
  • Strong investor awareness and media attention
  • Potential to raise substantial capital

Considerations:

  • Higher costs and longer timelines
  • Extensive due diligence and disclosure obligations

Best suited for:
Established, growing, and stable businesses with valuations typically exceeding $300 million.
Smaller or earlier-stage companies (generally under $100 million) may find more efficient alternatives in the Canadian marketplace.

Reverse Takeover (RTO)

An RTO occurs when a private company merges with or is acquired by an existing publicly listed “shell” company—one that has no active operations but maintains its exchange listing.

Advantages:

  • Quicker and more cost-effective than an IPO
  • Immediate public listing without the need for underwriting

Considerations:

  • Complex negotiation process between private and shell shareholders
  • Lower initial market visibility compared to IPOs

Best suited for:
Emerging businesses in technology, life sciences, or natural resources that want to access public markets efficiently while maintaining strategic flexibility.

Direct Listing

A Direct Listing, or non-offering prospectus, allows a company to become publicly traded without raising new capital during the listing process.

Advantages:

  • Lowest cost route to public status
  • Avoids equity dilution at the time of listing

Considerations:

  • Limited initial investor awareness (no investment bank marketing)
  • Requires sufficient capital reserves to operate post-listing

Best suited for:

  • Smaller companies with private funding sufficient for 12–18 months of operations post-listing
  • Larger, well-capitalized businesses—like Spotify’s U.S. example—that prefer to go public without an IPO’s expense or complexity

Capital Pool Companies (CPCs) & SPACs

CPCs and SPACs are purpose-built vehicles that raise capital to identify and merge with an operating business.

  • CPCs: Smaller structures (typically under $10 million) designed for early- to mid-stage companies.
  • SPACs: Larger capital pools (often $100 million+) targeting sizeable or research-intensive opportunities—such as deep-tech or biotech companies with significant future growth potential.

Advantages:

  • Clean and transparent structure
  • Backed by investment dealers who can assist with future financings and investor awareness

Considerations:

  • Dormancy risk—some CPCs and SPACs remain inactive for extended periods
  • Shareholder impatience if transactions take too long to close

Best suited for:

  • SPACs: Large-scale or research-intensive ventures with significant capital needs
  • CPCs: Smaller companies that require public listing access without major upfront financing

In Summary:
Canada offers a range of pathways for companies to access public markets, each with its own advantages, considerations, and suitability depending on stage and growth objectives. Whether you are evaluating an IPO, an RTO, a direct listing, or a CPC/SPAC, understanding the strategic trade-offs of each route can help you make informed decisions, optimize access to capital, and position your business for long-term success.

Final Considerations

Each go-public pathway presents a different balance of speed, cost, visibility, and control.
At Cyan Capital, we assess your company’s strategic objectives, capital requirements, and market readiness to design a go-public strategy that positions your business for long-term success in the public markets.