New – Reporting Requirements for Prospectus Exemptions

Further amendments were made to the Prospectus Exemptions on July 7th 2016. The Ontario Securities Commission has introduced a new harmonized report of exempt distribution. The amendment aims to reduce reporting requirements for foreign issuers conducting offerings into Canada and creates a new reporting form (Form 45 -106F1). Previously, all issuers and underwriters were required...

The Ontario Securities Commission (“OSC”) is adopting four new private placement exemptions: • a crowdfunding exemption; • an offering memorandum exemption; • a family, friends and business associates exemption; and • an exemption that allows a reporting issuer to issue securities to its existing security holders. Crowd Funding Exemption The emergence of crowdfunding as not...

Crowdfunding is a high profile means of raising seed capital for start-ups.   Services such as kickstarter and indiegogo are frequently looked to by Canadian companies as potential funding vehicles.   Unfortunately, raising money by crowdfunding services such as these is not a viable option for most Canadian start-up businesses.   The reason being that...

An “offering memorandum” (“OM”) is a disclosure document intended to provide investors with the ability to make an informed investment decision. A client recently approached us wanting to use an offering memorandum to raise money in Ontario.  Our advice was to suggest the company use a term sheet, which is a bare bones description of the...