Alberta Securities Commission Announces New Support For Startups

In an exciting development for Alberta-based startups and small businesses, the Alberta Securities Commission has adopted a new rule – Prospectus Exemptions for Start-up Businesses (ASC Rule 45-517). The rule is designed to streamline small, local investment rounds for startups and high-growth companies, while still providing appropriate levels of investor protection. The issuer cannot be a reporting issuer in any Canadian jurisdiction, and must have its head office in Alberta. Investors must also be Alberta-based.

Distributions made under this rule do not require an accompanying prospectus. Instead, in order to rely on this exemption, the issuer must prepare an offering document that provides information about its business, its management, and the nature and purpose of the offering. However, there is no requirement to disclose financial statements or provide continuous disclosure to investors. Distributions may be made via registered online funding portals,