A corporate structure whereby companies can issue shares to the public before actually establishing a line of business. The purpose of such a capital structure was to provide an easy way for early-stage companies to raise capital. With a minimum investment from founders of $100,000, the junior capital pool company could get a listing and exposure to public markets.
Taobiz explains Junior Capital Pool - JCP
This "start-up" financing was invented in Alberta, Canada, largely fueled by speculation in the province's oil industry. Because this is a legal concept as much as a financial one, JCPs only exist in Canada.
