BACM Industries Ltd. v. MNR, 73 DTC 90, [1973] CTC 2093 (T.R.B.) -- summary under Paragraph 20(1)(e)

In February of 1968 the taxpayer filed a registered statement with a view to the issuance of convertible debentures in the American markets. In May of 1968 it amended the statement with a view to issuing shares instead to the public. Later, after a decline in share prices, the taxpayer entered into an agreement with Sogemines Ltd. in which it raised $3.3 million from the issue of 175,000 common shares, and then financed a business acquisition through the utilization of these cash proceeds and the issuance of a further 365,000 shares. Mr. Cardin stated (at p. 91) that "the different steps taken by the company in financing the expansion of the company's operations constitute an overall financing scheme and the successful realization of the company's project" and found that all of the expenses relating to the various stages of that financing endeavour were deductible under s. 11(1)(cb)(i).