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New OSC Prospectus Exemption - InvestmentPitch Media

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There’s good news for companies looking to raise funds privately from investors in Ontario, as the Ontario Securities Commission announced that it will be adopting a new “family, friends, and business associates” prospectus exemption. This new provision will allow issuers to sell securities to its principals, certain family members, and close personal friends, and business associates without a prospectus.

Additional Information:

Company: Ontario Securities Commission
Website: http://www.osc.gov.on.ca/
Date Published: Mar 20, 2015
Transcript: Available

Video Transcript:

I’m Amanda Rose Schellenberg for InvestmentPitchMedia.

There’s good news for companies looking to raise funds privately from investors in Ontario, as the Ontario Securities Commission announced that it will be adopting a new “family, friends, and business associates” prospectus exemption.

This new provision will allow issuers to sell securities to its principals, certain family members, and close personal friends, and business associates without a prospectus.

The conditions of the exemption will require investors to sign a risk acknowledgement form that outlines the key risks related to the investment, while also confirming that the investor qualifies to make the investment.

The new provision is expected to be a cost-effective way for issuers to raise capital.

Howard Wetston, Chairman and CEO of the OSC states that “Early stage issuers will benefit from this exemption as it will provide them with greater access to capital at a critical stage” … “Investors will also benefit through greater access to opportunities at the ground level, and everyone benefits from greater harmonization across Canada.”

The new provision is slated to come into effect on May 5th, 2015.

I’m Amanda Rose Schellenberg for InvestmentPitch Media.

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This video is for informational purposes only, and is not a recommendation to buy or sell any securities.