The British Columbia Securities Commission (BCSC) has issued a notice dated March 20, 2014 requesting comments on whether the BCSC should consider adopting an exemption which would allow equity financings of small amounts raised from many individuals (as a form of Crowdfunding) through online portals (Portals) to be exempt from the prospectus requirements.  The notice was released concurrently with proposed start-up Crowdfunding rules  in certain other Canadian jurisdictions (see related posts by our colleagues from the Toronto and Montreal offices of Fasken Martineau DuMoulin LLP) and follows the implementation of a similar prospectus exemption for Crowdfunding in Saskatchewan.

If adopted, the Start-Up Crowdfunding exemption would join the already existing British Columbia exemptions, which include the private issuer; family, friends and business associates; accredited investor; and offering memorandum exemptions (Existing Exemptions).

In order to use the Start-Up Crowdfunding exemption, among various other requirements, an issuer must:

  • not be a reporting issuer or an investment fund;
  • not raise more than $1,500 from any one investor or exceed gross proceeds of more than $150,000 per offering;
  • not make more than two offerings per year;
  • complete the offering through a Portal; and
  • provide a streamlined offering document to investors through the Portal.

The Start-Up Crowdfunding exemption would permit
Continue Reading Equity Crowdfunding – BCSC Requests Comments on Possible Start-Up Crowdfunding Exemption