Securities Regulation

British Columbia Securities Regulation

and FrontFundr

FrontFundr supports investments by British Columbia residents under various prospectus exemptions available to companies raising capital, including*:

  1. Start-up Crowdfunding Exemption– any resident of British Columbia may purchase securities from any private company with its head office in British Columbia, Saskatchewan, Manitoba, New Brunswick, Nova Scotia, and Quebec provided that following conditions are satisfied:
    • the individual invests no more than $1,500 per offering;
    • the company raising capital (the Issuer) distributes its securities through an online Funding Portal;
    • the Issuer cannot raise more than $250,000 per offering and is restricted to not more than two start-up crowdfunding offerings in a calendar year (not more than $500,000 per year); and
    • the Issuer distributes securities using the Start-up Crowdfunding Offering Document made available through the online Funding Portal.
    • Any qualified investor in British Columbia or Alberta may purchase securities from any private company with its head office in British Columbia or Alberta up to $5,000, if the investment is deemed suitable by a registered dealer.
  2. Offering Memorandum Exemption – under this exemption, any resident of British Columbia may purchase securities from any issuer provided, before the purchaser signs the agreement to purchase the securities, the issuer:
    • obtains a signed risk acknowledgement form from the purchaser; and
    • delivers an offering memorandum, prepared in the required form, to the purchaser.
  3. Accredited Investor Exemption – under this exemption, any resident of British Columbia may purchase securities from any issuer, provided the purchaser satisfies any of the following criteria:
    • earned a net income before taxes exceeds $200,000 (or $300,000 combined income with spouse) in each of the two most recent years and who reasonably expects to exceed that net income in the current year;
    • has alone or with spouse at least $1 million in financial assets (cash and securities) before taxes. (In calculating an individual's financial assets, any outstanding loans incurred to acquire those assets must be deducted.);
    • holds alone or with spouse at least $5 million in net assets; or
    • is a corporation, limited partnership, trust or estate having net assets of at least $5 million.
  4. Family, Friends & Business Associates Exemption – under this exemption, any resident of British Columbia may purchase securities from any issuer, provided the purchaser satisfies any one of the following criteria:
    • is a spouse, parent, grandparent, brother, sister, child or grandchild of a director, executive officer, founder or control person of the issuer;
    • is a parent, grandparent, brother, sister, child or grandchild of the spouse of a director, executive officer, founder or control person of the issuer;
    • is a close personal friend of a director, executive officer, founder or control person of the issuer; or
    • is close business associated of a director, executive officer, founder or control person of the issuer.

*Please note that above list is a summary of most used exemptions and criteria. For a complete overview visit the British Columbia Securities Commission website

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