Last month in Part I of this series we introduced you to the
new equity crowdfunding prospectus exemption and rules regarding
Multilateral Instrument 45-108 (the Instrument).
As you will no doubt recall, the Instrument provides a means for
companies to raise capital from the general public in return for
equity in the company without first issuing and certifying a
prospectus. As a refresher, the Instrument came into effect on the
25th of January, 2016 and necessitates that numerous requirements
must be filed by issuers, investors, and crowdfunding portals
before an investment may properly be made under the exemption the
Instrument introduces.
This week we will explore some of the risks that raising capital
under the Instrument may pose to issuers, as well as some of the
hazards potential investors should keep in mind when considering
whether to invest in companies under the regime. Further, we will
provide some tips for investors and/or acquirers targeting a
company
