A company that goes public by filing a registration statement with the SEC, and raises capital without having a specific business or operations. The initial purpose of such a company is to use the capital raised to seek a business opportunity to merge or acquire. To raise capital, a blind pool company is usually permitted to list and offer its shares to the investing public. Blind pools are normally used as vehicles to merge with privately held companies that want to be public, and have access to public investors.
A blind pool company is often defined as a development stage company that has generally disclosed its business plan or purpose, but without identifying specific operations to be carried out or products to be developed. Historically, this type of companies was invented by the former Alberta Stock Exchange (back in 1987) as an easier alternative to conventional initial public offerings. It was later re-invented as the capital company program (CPC).
Blind pool companies are also known as blank check companies.
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