In our February 2019 bulletin, we reported that the Canadian Securities Administrators (CSA) were working to harmonize and refine the start-up, crowdfunding regime across Canada through the development of a national instrument. On October 3, the Alberta Securities Commission (ASC) announced the adoption of Blanket Order 45-521 Start-up Crowdfunding Registration and Prospectus Exemptions (Alberta Order) as an interim measure to facilitate access to capital for start-ups and small businesses before the national instrument is implemented. The ASC modelled the Alberta Order on similar, local orders and instruments that have been operating in British Columbia, Saskatchewan, Manitoba, Québec, New Brunswick and Nova Scotia (Participating Jurisdictions) since May 2015.

The crowdfunding regime can help businesses benefit from greater access to capital from a potentially larger number of investors, including retail investors. But the route to a successful and compliant capital raise isn’t always straightforward. AUM Law has extensive experience advising firms and individuals on how to raise capital in Canada’s exempt market in compliance with applicable securities laws.