Equity Crowdfunding Has Arrived In Ontario

Crowdfunding has officially been launched in Ontario as of January 28, 2016, enabling Canadian businesses to raise capital at a low cost by reaching out to a large number of investors over the Internet. The new regime, available in Ontario, Québec, Manitoba, New Brunswick and Nova Scotia, is particularly attractive to start-ups and small and medium-sized enterprises in their early stages of development seeking access to sources of capital not otherwise available in the prospectus exempt market. Up to $ 1.5 million in annual total proceeds can be raised under the new exemption.

Although crowdfunding has been available in British Columbia, Saskatchewan, Québec, Manitoba, New Brunswick and Nova Scotia since May 2015 by way of local blanket orders, the new regime differs in that it is available to non-reporting issuers and it provides for higher investment and capital raising limits. The new crowdfunding exemption is available to all Canadian companies, both private and