23:04:06 EDT Thu 17 Oct 2024
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Globe says OSC relaxes rules in pilot start-up program

2024-05-21 08:58 ET - In the News

The Globe and Mail reports in its Monday edition that Ontario's finance regulator is piloting a trio of initiatives aimed at helping start-ups raise money. The Globe's Jameson Berkow writes that until Oct. 25, 2025, small businesses raising up to $3-million and not-for-profit angel investor groups will be exempted from having to register with the Ontario Securities Commission as a dealer. The OSC is also extending its existing self-certified investor pilot, which expands the definition of accredited investors beyond certain wealth thresholds to include relevant educational or professional experience. Accredited investors can buy shares in a company without having to file a prospectus but need to earn more than $200,000 in pretax income for at least two years in a row, have more than $5-million in net assets or more than $1-million in financial assets in order to qualify. The self-certified program allows those possessing at least one of 16 qualifying criteria -- mostly advanced degrees and professional designations like certified public accountants, but also "management, policymaking, engineering, product or other relevant operational experience" -- to invest up to $30,000 a year as if they were accredited investors.

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