Starting today, May 14, the Nova Scotia Securities Commission will allow companies to raise capital in the province through the startup crowdfunding exemption.
The exemption will allow startups and early stage businesses to raise up to $500,000 per year from investors through Internet funding portals.
“The startup crowdfunding exemption reduces the regulations around the raising of capital for smaller Nova Scotia companies and introduces a modern, cost-effective way to connect with investors,” said Sarah Bradley, chair and CEO of commission. “This exemption also creates an opportunity for investors to find local investment options and help grow our provincial economy.”
The method can be used by any business with a head office in Canada that is not a reporting issuer to raise funds from investors in Nova Scotia. The rules and the investor protection conditions are outlined in Multilateral CSA Notice 45-316 – Startup Crowdfunding Registration and Prospectus Exemptions.
For more information, contact NSSC.Crowdfunding@novascotia.ca or visit http://nssc.novascotia.ca .
The Nova Scotia Securities Commission is the provincial government agency responsible for regulating trading in securities in the province.