Stockhouse Publishing, an online investor community that connects active investors and small cap public companies, has created the first equity investment platform specifically for public companies to access high net worth accredited investors.
The platform, called the Stockhouse Deal Room, allows public companies to monitor capital raising. Features include a specific landing page for each deal outlining information about the investment with supporting collateral materials, online identity verification for accredited investors, document review and digital signing of agreements, and in-deal conversion marketing support.
“Private placement financings used to be the exclusive domain of brokers and their small network of high net worth clients,” said Robert Cook, senior vice president of market development at the Canadian Stock Exchange. “The investor sitting at home in Red Deer, even if they were accredited, just didn’t have a way to participate in these deals or even know they exist. Now with web-based platforms like the Stockhouse Deal Room, accredited investors from all over the country can learn about and participate in financings like never before.”
Stockhouse Deal Room is launching with three private placement financings, including Movarie Capital, a capital pool company acquiring Shakti Activewear; Medifocus Inc, which develops and commercializes minimally invasive treatment systems used in treatment of cancerous and benign tumors or enlarged prostates; and EEStor Corporation, which provides electrical energy storage and related technologies.
“In the past, a public company could rely on a broker or brokerage firm to bring their clients into a deal and close the financing, but those days are long over,” said Mirsad Jakubovic, CFO of Medifocus Inc. “Now, public companies need to utilize new ways of finding qualified investors for their financings and the Stockhouse Deal Room delivers this capability.”
The Stockhouse Deal Room is powered by InvestX.com, which also powers the Waverley platform responsible for helping Spacefy raise its $300,000 seed round.