Fallen Angels Exemption: Capital Sources Expand…But Should They?

(1) Introduction

Announced on March 31, 2021, the Alberta Securities Commission (ASC) and the Financial and Consumer Affairs Authority of Saskatchewan (FCAA) adopted a new Self-Certified Investor Prospectus exemption. The exemption (effective immediately) will only apply to companies in Alberta and Saskatchewan issuing securities (e.g. shares, notes, SAFEs) to investors in these provinces. The capital raising thresholds have been set at $10,000 per issuer per self-certified investor, and an investor can invest up to three times per calendar year (for a total of $30,000 in reliance on the exemption).

The exemption has been implemented on a three-year pilot basis. Full details of the exemption are set out in the Multilateral CSA Notice of Implementation Alberta and Saskatchewan Orders 45-538 Self-Certified Investor Prospectus Exemption and on the websites of the ASC and the FCAA.