Despite the complexity of securities laws and stock exchange policies, private placements continue to be completed using a manual, paper-based process. The process is inefficient and costly and private placements are often non-compliant — even when a lawyer is involved. As part of an in-depth assessment of the private placement market, the British Columbia Securities Commission concluded that:
“companies have a poor understanding of the [prospectus] exemptions, do not keep adequate records of their private placements, and use professional advisors who do not have specialized knowledge of the securities industry and the private placement market”
The Capiche platform is an expert system for simplifying the administration of private placement financings while ensuring compliance. Capiche brings the process on-line, automating the preparation of all required documentation, coordinating interactions with investors and those referring investors to the financing and guiding the transaction to completion.
Capiche is led by James Atherton and Jonathan Longe. Before founding Capiche, Atherton practiced as a securities lawyer with reputable national and regional law firms and served as an executive of a public company in the mining industry. Longe is the founder of Corebox, a web-based platform for mining companies to graphically illustrate their drill results. Before Atherton and Longe founded Capiche, they worked together as lawyer and client for ten years while Longe was building out Corebox’s business.
Atherton stated that:
“most securities lawyers acknowledge quite early in their careers that the manual, paper-based method of recycling the last deal’s paper for the next client’s private placement does not make much sense. Instead of leaving the resource sector during the recent prolonged downturn, Jonathan and I took the opportunity to address this problem”
With the preparation of all required documentation automated, companies can “go live” with their offerings in minutes not days and are able to hit tight financing “windows”. And, as Capiche has brought the subscription process online, these companies are able to take subscriptions for smaller dollar amounts from a greater number of investors thus gaining access to a significant untapped pool of investors.
Capiche has been well-received and provides significant value as evidenced by the following customer testimonials:
“Capiche provided a real-time summary of all received subscriptions received, putting us in full control of our private placement”
“we closed our private placement confident that it was completed in compliance with complex and ever-changing securities laws and stock exchange policies”
“our investors found completing on-line subscription agreements through Capiche to be straight-forward”
“I have no hesitation in recommending the Capiche platform to others who wish to save time and money on their next private placement financing”
Capiche is initially focused on British Columbia-based, TSX Venture-listed companies in the resource sector but aims to be the “go to” solution for all Canadian companies (both public and private) raising capital in the exempt market.