Equity Share Structures in BC VCCs – Improving Investor’s Chances of an Exit

British Columbia’s Small Business Venture Capital Act (“the Act”) provides for a 30% tax credit to investors (refundable in cash) who buy eligible investments through a provincially-registered venture capital corporation (“VCC”). The small business must meet eligibility requirements – What are the 6 qualifying activities? Manufacturing, processing or export of value-added goods produced in British […]

New Equity-Based Crowdfunding Platform Launched in New York

The Food and Agriculture Organization, agricultural production will need to grow globally by 70 percent between 2009 and 2050. According to the FAO The latest UN estimates of population suggest that by 2050 the planet will be populated by 9.1 billion persons, up from the current population of 6.8 billion (2009). This represents a 34 percent increase over the 41 year […]

Is HSBC Abandoning Small Business in Canada?

A banker friend told me that one of their clients – a lawyer – was told by her HSBC  rep that since her revenues are below $3 MILLION dollars that they would not be able to assist them with their new business From my perspective, if a bank isn’t interested in your business you shouldn’t […]

CRA Considers Position On Crowdfunding Receipts

In October of 2013 the CRA issued a response to a taxpayer regarding the nature of crowdfunding receipts from a tax perspective. depending on the facts and circumstances of a specific situation, monies received by a taxpayer under a crowdfunding arrangement could represent a loan, capital contribution, gift, income, or a combination thereof.  However, since […]

Private Issuer Exemption

Private issuer exemption If you have already formed a company, limited partnership, trust or co-operative association, you probably relied on the private issuer exemption without even knowing it. After forming your organization, you may need additional financing in order to continue your operations. By using the private issuer exemption, you can issue securities to form […]

Toronto, Vancouver and Waterloo are all in the Top 20 of Global Technology Hubs

According to STARTUP GENOME these 3 Canadian cities are all in the top 20 of global technology hubs. Generous Canadian R&D incentives and welcoming immigration policies are credited for our impressive rankings… Here are the top 20 technology hubs, as defined by the Startup Genome: Silicon Valley Tel Aviv Los Angeles Seattle New York City Boston […]

Crowdfunding in Saskatchewan

According to Derek Fahl at WMCZ Lawyers Saskatchewan may be the first jurisdiction in North America to offer crowdfunding the way it was originally envisioned – http://wmcz.com/legal-ideas/crowdfunding-saskatchewans-modest-proposal/ Securities – FCAA Asks for Comments Regarding the Proposed Saskatchewan Equity Crowdfunding Exemption We ask for your input about the General Order 42-925 Saskatchewan Equity Crowdfunding Exemption and its associated […]

New rules allow startups to advertise fundraising in the US

SEC Issues New Rules for Private Placements The new rule developed by the SEC allows companies to broadly advertise private placements. However Canadian companies need to be aware of restrictions in their own province. While our provincial securities commissions continue to protect their turf at the expense of efficient capital markets in Canada, Canadian companies […]

“Where Angels Fear To Tread” Available on Amazon

“Hello Rob, It was a pleasure to meet you a few weeks ago. I am almost done reading your book and learning about the tax implications. I want to thank you for giving me such a great knowledge base. Best, Gonzalo Tudela, BBA CFA Level II Candidate 5.0 out of 5 stars  “much needed book for […]

Canadian Securities Administrators Move to Ease Access to Capital

On December 20, 2012, securities regulatory authorities in Yukon, Alberta, Saskatchewan, Northwest Territories, Nunavut, Manitoba, Québec, Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador, (the “participating jurisdictions” or “we”) are each publishing a harmonized interim local order (OM-form exemption order) that provides exemptions from certain requirements of Form 45-106F2 Offering memorandum for […]