For Immediate Release
March 25, 2021

Alberta and Saskatchewan securities regulators seek comment on proposed new small business financing initiative

Calgary – The Alberta Securities Commission (ASC) and the Financial and Consumer Affairs Authority of Saskatchewan (FCAA) are seeking input on a proposal designed to provide greater access to capital by start-ups and other small businesses in Alberta and Saskatchewan and broaden investment opportunities for investors in those provinces.

“Small businesses in our provinces continue to face challenging economic conditions so it’s important that we pursue new approaches to facilitate their ability to access capital while still protecting investors,” said Stan Magidson, Chair and CEO of the ASC. “We are hopeful that this proposal will help address the financing challenges of small local businesses that do not currently have the profile or growth prospects to attract the interest of venture capitalists or public capital markets,” added Roger Sobotkiewicz, Chair and CEO of the FCAA.

The proposed new small business financing prospectus exemption would allow Alberta and Saskatchewan businesses to raise up to $5 million from investors in those provinces who wouldn’t qualify to invest under other prospectus exemptions. The exemption contemplates the use of a simple, streamlined offering document with tiered offering and investment limits depending on whether financial statements are provided to investors.

Details of the proposal are set out in CSA Multilateral Notice and Request for Comment 45-539 Proposed Prospectus Exemption for Small Business Financing available on the websites of the ASC and the FCAA.  The comment period for the proposed new prospectus exemption is open until May 7, 2021.

The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

For media inquiries, please contact: 

Ilana Kelemen
Canadian Securities Administrators
media@acvm-csa.ca

Theresa Schroder
Alberta Securities Commission
587-830-4286

Shannon McMillan
Financial and Consumer Affairs
Authority of Saskatchewan
306-798-4160

 

For investor inquiries, please refer to your respective securities regulator. You can contact them here.