Regulatory Alerts2021-08-25
Regulation 45-108 respecting Crowdfunding
Securities regulators in Canada issued Regulation 45-108 to establish a prospectus exemption for eligible crowdfunding issuers distributing eligible securities through registered funding portals. The regulation imposes strict limits on investor acquisition costs, caps aggregate proceeds at $1.5 million per 12-month period, and mandates specific disclosure documents, certificates, and withdrawal rights. It further requires ongoing financial reporting and prohibits general solicitation or lending arrangements to purchasers during the distribution.
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