Discover how Canadian and US companies access cross-border capital markets through SPACs, CPCs, and RTOs with Sun Point Capital's global advisory network.
Last Reviewed: June 2025 | Originally Published: June 2025
Cross-border capital markets give Canadian and US companies direct access to a broader, deeper pool of institutional investors, strategic partners, and public listing vehicles than either domestic market offers alone. Businesses that leverage both the TSX Venture Exchange and US capital markets — through structures such as SPACs, CPCs, and RTOs — consistently unlock faster growth timelines and stronger valuations. Sun Point Capital specialises in building these cross-border pathways, connecting businesses from North America, Hong Kong, and Dubai to the capital networks that match their stage and ambition.
The North American capital ecosystem is the largest and most liquid in the world. According to the World Federation of Exchanges, the combined market capitalisation of North American equity markets exceeded USD $45 trillion in 2023, representing more than half of global listed equity value. For a private company seeking meaningful institutional capital access, limiting the search to a single domestic market is a strategic constraint that most high-growth businesses cannot afford.
Canadian and US capital markets are complementary rather than competitive. Canada's TSX Venture Exchange provides one of the world's most accessible regulatory frameworks for emerging companies, particularly through the Capital Pool Company (CPC) program. The US markets — anchored by the NYSE, NASDAQ, and a robust SPAC ecosystem — offer unparalleled depth of institutional investor participation. A well-structured cross-border strategy activates both simultaneously.
Sun Point Capital's global network bridges these ecosystems. Businesses in sectors from technology and natural resources to financial services and healthcare can access tailored capital access strategies that draw on the full range of North American financing vehicles.
Special Purpose Acquisition Companies (SPACs)
A SPAC is a publicly listed blank-check company formed to acquire a private business, effectively taking it public without a traditional IPO. US-listed SPACs have raised hundreds of billions of dollars over the past decade, with a notable concentration of activity between 2019 and 2022. For Canadian companies seeking US capital markets exposure, a cross-border SPAC merger can provide access to US institutional investors while retaining Canadian operational structures.
Understanding the full mechanics of SPAC financing is essential before committing to this path. Businesses that have already reviewed what is SPAC financing will recognise that sponsor alignment, trust account management, and redemption dynamics are all critical variables in cross-border SPAC transactions.
Capital Pool Companies (CPCs)
The CPC program, administered by the TSX Venture Exchange, is a uniquely Canadian innovation in capital formation. A CPC raises a small amount of capital through an initial public offering, lists on the exchange, and then completes a qualifying transaction — effectively a reverse merger with a private operating company. The CPC vehicle is well-suited to early and growth-stage businesses that want Canadian public market status and access to Canadian institutional investors with lower regulatory friction than a full IPO.
For US companies eyeing the Canadian market, the CPC structure offers a fast, cost-efficient entry point into TSX Venture-listed status. For Canadian companies, it provides a stepping stone toward broader North American capital access.
Reverse Takeover Transactions (RTOs)
An RTO allows a private company to acquire or merge with an existing publicly listed shell company, inheriting its public listing status. RTOs are available in both Canadian and US markets, and cross-border RTOs — where a private company in one jurisdiction merges with a shell in another — are increasingly common as businesses seek dual-market exposure.
The RTO pathway is particularly attractive for businesses that need speed to market, as the timeline is typically shorter than a traditional IPO. Cross-border RTOs require careful structuring to manage securities law compliance across multiple jurisdictions, which is where experienced advisory services become indispensable.
Cross-border capital markets transactions involve overlapping regulatory frameworks from multiple authorities. In Canada, the primary regulators are the provincial securities commissions — notably the Ontario Securities Commission (OSC) and the British Columbia Securities Commission (BCSC) — along with the TSX Venture Exchange itself. In the United States, the Securities and Exchange Commission (SEC) governs public market transactions, with FINRA overseeing broker-dealer conduct.
Businesses pursuing cross-border structures face several compliance requirements simultaneously: continuous disclosure obligations, cross-border prospectus recognition agreements, and foreign private issuer rules that govern how non-US companies can access US capital markets. The Multijurisdictional Disclosure System (MJDS), a framework jointly developed by the SEC and Canadian securities regulators, simplifies some of these requirements for qualifying Canadian issuers seeking US listings.
Navigating these frameworks without experienced advisory support creates significant execution risk. Delays in regulatory approval, disclosure deficiencies, or structuring errors can extend transaction timelines by months and erode the value proposition of the chosen public listing vehicle.
A successful cross-border capital strategy begins with a detailed assessment of the company's stage, sector, investor base, and strategic objectives. The pathway chosen — SPAC, CPC, RTO, or a hybrid structure — must align with where the business is today and where it needs to be in 24 to 36 months.
Stage-Matched Capital Access
Early-stage businesses with proven technology or a differentiated market position but limited revenue are often best suited to the CPC pathway in Canada or a smaller US SPAC. Growth-stage businesses with established revenue, a clear expansion plan, and institutional investor interest may be better positioned for a larger SPAC merger or a cross-border RTO that unlocks dual-market capital.
Investor Geography and Profile
The geographic origin of capital matters. US institutional investors — mutual funds, hedge funds, pension capital, and family offices — operate under different mandates and risk tolerances than their Canadian counterparts. A company headquartered in Dubai or Hong Kong seeking North American capital needs a strategy that speaks to both markets simultaneously, which requires a global network with active relationships across these investor communities.
Sun Point Capital's comprehensive solutions covering financing and strategic advisory services are designed precisely for this complexity. Rather than isolating one market or one instrument, the firm structures transactions that activate multiple investor pools in parallel.
Timeline and Execution
Cross-border transactions are complex, and timeline management is a competitive advantage. Businesses that engage advisors early — ideally 12 to 18 months before the intended listing date — have materially better outcomes than those who begin the process reactively. Early engagement allows for preparatory work on financial statements, governance structures, and investor positioning that significantly reduces execution risk.
Q: Can a US company list on the TSX Venture Exchange through a CPC transaction?
Yes. A US-based private company can complete a qualifying transaction with a TSX Venture-listed CPC, resulting in the US company becoming a Canadian public issuer. This structure is used by US businesses seeking access to Canadian institutional capital, resource sector investors, and the regulatory environment of the TSX Venture Exchange. The transaction requires compliance with both TSX Venture Exchange policies and the securities laws of the US company's home state.
Q: How long does a cross-border SPAC or RTO transaction typically take?
The timeline depends on the complexity of the structure, the jurisdictions involved, and the preparedness of the target company. A well-prepared cross-border RTO typically takes six to twelve months from initial engagement to completed listing. SPAC mergers in the US context are subject to SEC review timelines and shareholder approval requirements, which can extend the process to twelve to eighteen months. Early regulatory engagement and thorough documentation preparation are the most effective ways to compress these timelines.
Q: What are the primary advantages of accessing both Canadian and US capital markets simultaneously?
Dual-market access multiplies the addressable investor base, reduces dependence on any single market's liquidity cycles, and creates competitive tension among investors that can improve valuation outcomes. Canadian markets offer strong participation from resource-sector and venture-stage institutional investors, while US markets provide access to the deepest pools of growth and technology capital globally. Businesses with cross-border listings also benefit from enhanced credibility with customers, partners, and employees in both markets.
Cross-border capital markets transactions do not succeed on structure alone. The advisory relationship — the quality of counsel, the depth of the investor network, and the experience of the transaction team — determines whether the capital raised matches the business's needs and whether the listing creates durable long-term value.
Professional advisory services in this space provide far more than regulatory guidance. They include investor positioning and narrative development, deal structuring and negotiation, post-listing governance support, and ongoing strategic counsel as the business navigates its first years as a public company.
Sun Point Capital's global network connecting businesses to US and Canadian capital markets is built on active relationships with institutional investors, exchange officials, legal counsel, and strategic partners across North America, Hong Kong, and Dubai. This network is not theoretical — it is the operational infrastructure that turns a well-structured transaction into a successfully executed one.
The most common reason cross-border transactions stall or fail is inadequate preparation on the company side. Investors and regulators in both Canada and the US expect a high standard of financial disclosure, governance documentation, and business plan articulation. Businesses that invest in preparation before engaging the public markets dramatically increase their probability of success.
Key preparation steps include audited financial statements prepared under IFRS or US GAAP (depending on the target jurisdiction), a board structure that meets exchange governance requirements, a detailed business plan with defensible financial projections, and a clear articulation of the use of proceeds from the capital raise.
This groundwork is not bureaucratic formality — it is the foundation on which investor confidence is built. Institutional investors in both Canada and the US apply rigorous due diligence before committing capital, and companies that present clean, comprehensive documentation close transactions faster and at better terms.
The expansion of cross-border capital flows is a defining trend in global finance. Businesses based in Hong Kong and Dubai are increasingly looking to North American public markets as a pathway to global capital access and enhanced corporate credibility. Simultaneously, North American businesses are recognising that institutional investors from Asia and the Middle East represent a significant and growing source of growth capital.
A cross-border capital strategy that integrates North American listing vehicles with a global investor development program positions businesses to capture capital from multiple geographies simultaneously. This is not a theoretical advantage — it is a measurable competitive edge in transactions where multiple institutional investors are competing for allocation.
The combination of tailored capital access strategies — including SPACs, CPCs, and RTOs — with a global investor network represents the full-service model that sophisticated growth companies require. Sun Point Capital's advisory framework is built on precisely this integration, ensuring that businesses entering cross-border capital markets have both the structural expertise and the investor relationships to execute successfully.
For Canadian and US companies with genuine growth ambitions, cross-border capital markets are not optional — they are the most efficient path to the scale of capital required to compete globally. The combination of Canada's CPC and RTO frameworks with the depth of US SPAC and institutional markets creates a capital access ecosystem that no single jurisdiction can replicate.
The businesses that succeed in this environment share three characteristics: they prepare thoroughly before engaging the markets, they choose advisory partners with real cross-border networks and transaction experience, and they match their capital structure to their specific growth stage and investor profile. Sun Point Capital delivers on all three dimensions, offering comprehensive solutions covering financing and strategic advisory services that take companies from private growth ambition to public market reality.
External Reference: World Federation of Exchanges — Annual Statistics Report 2023