REGINA – The Saskatchewan government is looking for public input on a proposed crowdfunding exemption.
The province announced earlier this year it may launch a two-year pilot project to help small firms sell shares and get off the ground.
The current rules are believed to be too expensive, time consuming and complicated for small businesses or start-ups to raise funds through traditional means like shares, limited partnership units and promissory notes.
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“This is a unique opportunity for people who are new to investment to gain some experience,” said Dave Wild, CEO of the financial and consumer affairs authority for the province.
Under the proposed exemption, businesses would be able to make two, six-month offerings of $150,000 each during a year.
Businesses would not be allowed to be a reporting issuer or an investment fund and cannot offer derivative type securities and would have to give at least 10 business days notice before posting online.
Companies would also not be allowed to charge investors a commission.
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