Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
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ASC Updates Raising Capital for Small Businesses Resource: Fostering Alberta’s New Economy
Alberta Securities Commission | Denise Weeres | Oct 29, 2020
ASC has just rolled out some new, plain language, Small Business web-content intended to help entrepreneurs and their advisors navigate the securities law requirements when raising capital through the sale of shares or other securities. It provides some key terms, frequently asked questions, overview of common capital raising exemptions, some tips and traps.
Many factors are impacting and changing Alberta’s capital market and economy. Efforts are being taken to strengthen and to help expand and diversify the Alberta economy. There are a multitude of parties engaged in these strengthening and diversification efforts. The Alberta Securities Commission (ASC) is Alberta’s securities regulator. We are responsible for protecting investors and fostering a fair and efficient capital market.
The ASC supports these economic efforts by ensuring appropriate securities regulation that protects investors, and fosters a vibrant capital market that facilitates access to capital by Alberta businesses and investment opportunities for Alberta investors. Our goal is to find the right balance of appropriately protecting investors without unduly burdening the businesses trying to raise capital to build and grow.
See: ASC adopts Start-up Crowdfunding Blanket Order
By engaging with market participants, ASC staff can better understand the challenges small businesses face in accessing capital.
The ASC’s various external advisory committees, including its New Economy Advisory Committee, help the ASC build connections in the community, obtain valuable insight from industry and explore how securities regulation can evolve to support economic diversification, while still providing appropriate investor protection.
Sources of Money
There are a variety of ways in which an entrepreneur may obtain the capital needed to operate their business, such as:
- their own savings and financial resources, often referred to as ‘bootstrapping’,
- relying on trade credit,
- loans from banks, credit union or other financial institutions,
- government grants or loans,
- investments by investors, whether through shares, loans, revenue sharing arrangements or the distribution of other securities.
As Alberta's securities regulator, the ASC’s focus is on the last method, raising money through the sale of securities.
If you are trading any of the broad array of products that constitute securities or derivatives, then securities law applies to you!
Resources and Education
- Small Business
- Raising Money by Selling Securities
- Key terms
- Frequently asked questions
- Going Public
- Intro to Raising Capital Using Prospectus Exemptions
- Common capital raising prospectus exemptions
- Considerations when investing
Continue to the full article --> here
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