CALGARY, Alta., September 1, 2021 /CNW/ – The Alberta Securities Commission (ASC) and the Financial and Consumer Affairs Authority of Saskatchewan (FCAA) today adopted a new prospectus exemption designed to facilitate greater access to capital for alberta and Saskatchewan businesses.
“This exemption is in addition to the self-certified investor prospectus exemption adopted in March 2021, and is the next step in our broader efforts to support innovation and diversification in our provinces,” said Stan Magidson, President and CEO of ASC. “This initiative aims to address the challenges that small businesses and start-ups face in accessing capital, while ensuring investor protection,” added Roger Sobotkiewicz, President and CEO of the FCAA.
The new small business financing prospectus exemption allows alberta and Saskatchewan businesses to raise up to $5 million from the public using a simple and simplified offering document. The exemption has tiered offering limits depending on whether financial statements are provided to investors. In order to mitigate risk to investors, investments are restricted, with higher limits possible if financial statements are provided or if the investor has a certain minimum income or has received investment advice from a registered broker. The investment limits do not apply to investors who qualify to invest under certain other common prospectus exemptions.
The exemption is being implemented on a three-year pilot basis. The details of the new exemption are set out in CSA Multilateral Implementation Notice 45-539. Small Business Financing available on the CSA and FCAA websites.
The CSA, the board of securities regulators of from Canada provinces and territories, coordinates and harmonizes the regulation of Canadian financial markets.
For investor inquiries, please refer to your respective securities regulatory authority. You can contact them here.
SOURCE Canadian Securities Administrators
For further information: For media inquiries, please contact: Theresa Schroder, Alberta Securities Commission, 587-830-4286; Shannon McMillan, Financial and Consumer Affairs Authority of Saskatchewan, 306-798-4160