May 3rd, 2022
Jul 10th, 2013
PART 4 OF A SERIES ON CROWDFUNDING
Some promising and exciting news came out of the Province of Saskatchewan yesterday (July 9, 2013) for equity crowdfunding!
The Financial and Consumer Affairs Authority of Saskatchewan (FCAA) hosted an information session and discussion regarding a proposed exemption to The Securities Act, 1988, (Saskatchewan securities rules) which would allow equity crowdfunding in Saskatchewan.
As I explained in earlier postings on crowdfunding and equity crowdfunding, equity crowdfunding is a way of issuing and selling capital stock in a company (among other securities) in small amounts to large numbers of people.
As the FCAA explains:
Crowdfunding is growing in popularity around the world. In Canada, it’s being used to pre-sell products and receive donations for small businesses or creative projects. However, other jurisdictions such as the United States are beginning to think about equity crowdfunding: raising capital for small businesses or creative projects via an online funding portal by selling securities like shares, limited partnership units and promissory notes.
Under the FCAA proposal, which may launch as early as the fall:
The Online Funding Portal:
For more information, please see this recent press release from the FCAA.
Seth B. Abbey, a corporate lawyer at Spiegel Sohmer with a focus on mergers and acquisitions, private equity financing and tax-driven reorganizations, is available to answer your questions about this and other topics.