ASC adopts new prospectus exemption to support small business capital raising

As part of our efforts to reduce regulatory burden, optimize securities regulation in an effort to foster capital formation, the ASC and the Financial and Consumer Affairs Authority of Saskatchewan (FCAA) have adopted a new prospectus exemption. CSA Multilateral Notice of Implementation 45-538 Self-Certified Investor Prospectus Exemption is designed to provide greater access to capital for Alberta and Saskatchewan businesses and broaden investment opportunities for investors in both provinces.

The new prospectus exemption permits investors who certify to having certain financial and investment knowledge, and acknowledge that they understand certain investment considerations and risks, to invest alongside accredited investors, with certain restrictions.

This is the third initiative the ASC has undertaken recently to support small businesses in their capital raising efforts, while still prioritizing the protection of investors. The other two were published for comment last week.

The first, ASC Proposed Blanket Order 31-536 Alberta Small Business Finder’s Exemption, is a proposed new registration exemption for finders to help start-ups and small businesses that have not raised in aggregate more than $5 million under available prospectus exemptions.

The second, CSA Multilateral Notice and Request for Comment 45-539 Proposed Prospectus Exemption for Small Business Financing is designed to provide greater access to capital by start-ups and other small businesses in Alberta and Saskatchewan and broaden investment opportunities for investors.

Later in April the ASC will be hosting a webinar to discuss these initiatives and to encourage feedback on the two proposed exemptions. More information will be shared about this webinar once it is available.

Visit the ASC website to view all news releases.  View the latest regulatory updates here.For further information, please contact: For Media InquiriesTheresa Schroder
Senior Advisor, Communications
587.830.4286 For Investor inquiriesASC Public Inquiries
Toll Free 1.877.355.4488

Source: ALBERTA SECURITIES COMMISSION (ASC)

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