Equity crowd-funding a go in Saskatchewan

The Saskatchewan government’s Financial and Consumer Affairs Authority has announced the launch of its Saskatchewan Equity Crowdfunding Exemption. The exemption allows Saskatchewan-based small businesses and start-ups to undertake two, six-month offerings of $150,000 each per year to investors who are also residents of the province. Investors are, in turn, limited to $1,500 per offering. The exemption is based on a proposal that was tabled for public feedback in October. Last week, the Ontario Securities Commission announced plans to publish proposals for new capital raising prospectus exemptions, which includes a crowd-funding exemption, in the first quarter of 2014.


Equity Crowdfunding Available in Saskatchewan

Starting today, Financial and Consumer Affairs Authority (FCAA) will allow small businesses and start-ups in Saskatchewan to sell stakes in their companies to residents of the province through the Saskatchewan Equity Crowdfunding Exemption.

The government’s Plan for Growth: Vision 2020 and Beyond highlights the importance of helping Saskatchewan small businesses and start-ups meet the challenges of growth.

“Small businesses play a central role in our economy,” Minister responsible for FCAA Gordon Wyant said. “Our government’s goal is to make sure that Saskatchewan continues to be one of the best places in Canada to start and grow a small business through competitive taxes, a continued reduction of red tape, measures to address the province’s labour shortage, and now through an additional source of funding.”

“We know that the current rules for selling a stake in a company can be expensive, complicated and time consuming for small businesses or start-ups,” FCAA Chair and CEO Dave Wild said. “Equity crowdfunding will help fill the fundraising gap for these businesses so that they can compete in our market. This is also an opportunity for Saskatchewan people to invest in Saskatchewan businesses – it’s a unique opportunity to help grow our provincial economy.”

Protecting the public interest is at the top of FCAA’s priorities. In addition to other precautions, the Equity Crowdfunding Exemption limits the amount of money individual investors can risk and how much individual companies can raise.

To learn more about equity crowdfunding, visit www.fcaa.gov.sk.ca/SKEC.

For more information, contact:
Daniela Machuca
Financial and Consumer Affairs Authority
Phone: 306-798-4160
Email: daniela.machuca@gov.sk.ca

Photo courtesy of Shutterstock.