OSC Adopts Start-Up Crowdfunding Exemptions

To better facilitate access to capital for small businesses, the Ontario Securities Commission (OSC) has adopted registration and prospectus exemptions for start-up crowdfunding effective July 30, 2020.

• Non-reporting issuers in Ontario can now issue eligible securities through an online funding portal to raise up to $250,000 per distribution (and $500,000 annually) on a prospectus-exempt basis.
• The prospectus and registration exemptions are being implemented by way of an interim local order in Ontario (the Interim Order) and are substantially similar to the local start-up crowdfunding exemptions available in British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, New Brunswick and Nova Scotia (collectively, and together with Ontario, the Participating Jurisdictions).