Canadian Securities Commissions are Proposing New Exemptions for Equity Crowdfunding - Video News Alert on Investmentpitch.com
July 4, 2014 - London
Vancouver, BC, July 4, 2014 - Given the growing popularity of crowdfunding as a method of raising funds, it was only a matter of time before the various securities commissions in Canada weighed in on the matter.
The regulatory authorities in Canada have issued proposed regulations, which have been open to comments from the public for a 90 day period that ended around June 20, 2014.
InvestmentPitch.com has produced a "video news alert" which provides a brief overview of the Canadian Securities Commissions' proposals for equity crowdfunding. If this link is not enabled, please visit www.InvestmentPitch.com and enter "equity crowdfunding" in the search box.
The Ontario Securities Commission, along with Manitoba, New Brunswick, Nova Scotia, Saskatchewan and Quebec are looking at an exemption that would allow reporting and non-reporting issuers, which includes both public and private companies, to raise up to $1.5 million during any 12-month period. An investor would be limited to investing $2,500 in any individual company and no more than $10,000 allocated among several companies in any calendar year.
There is also another fundraising proposal, called the Start-up Crowdfunding Exemption, which is being considered by the British Columbia Securities Commission and certain other provincial regulators, but not Ontario, which is aimed at non-public issuers which are at a very early stage of development.
It has less onerous restrictions and would allow companies to use the exemption twice in a 12-month period and raise up to $150,000 per offering, with individual investors limited to $1,500 per investment.
Both these fund raising proposals could result in a company acquiring a shareholder base in excess of 150 investors, which could be considered as the first requirement towards a listing on a Canadian Securities Exchange.
For more details on each of these proposed exemptions, please visit www.InvestmentPitch.com and watch the video.
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Barry Morgan, CFO
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Source: InvestmentPitch via Globenewswire