Noel Biderman was the president of Avid Life Media, a profitable Canadian growth company whose main businesses were various online social networks for groups seeking sexual partners and romance. Biderman was seeking to raise $60 million via a private placement offering to acquire a privately held online advertising sales company, merge the companies, and take the new and improved entity to the TSX Venture Exchange or the Toronto Stock Exchange. The Avid Life offering represented a legal and potentially lucrative investment. Nevertheless, only one investment bank (GMP Capital) was willing to help Biderman raise capital — because among the various social networks Avid Life owned the notorious Ashley Madison online community for married people seeking to commit adultery. GMP’s relationship was short-lived; after media coverage of the Avid Life offering started to focus on the bank’s willingness to service Biderman’s company, GMP withdrew its support. Possibly it was the bank’s desire to avoid being linked to someone known, rightly or wrongly, as the king of infidelity, that led to GMP’s withdrawn support, leaving Biderman unable to take a potentially lucrative investment opportunity to market.
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