Issuers in Canada seeking financing on a prospectus exempt basis
now have an additional means of raising capital. On January 25,
2016,
Multilateral Instrument 45-108
Crowdfunding (
MI 45-108), which we
previously reported on, came into force in
Manitoba, Ontario, Quebec, New Brunswick and Nova Scotia (the
Participating Jurisdictions). MI 45-108 intends to facilitate
online capital-raising activities by start-ups and small and
medium-sized enterprises through the creation of a new crowdfunding
prospectus exemption (the Exemption) and an online funding portal
registration framework.
The Exemption
The Exemption allows non-accredited investors to participate in
early-stage companies, something traditionally limited to
accredited and institutional investors. Non-accredited investors in
all Participating Jurisdictions will be able to invest up to $2,500
per offering under the Exemption. Non-accredited investors in
Ontario will be further limited to a maximum
