San Francisco, CA (PRWEB) October 06, 2014
Innovative Canadian consumer goods company WAFU Inc. launches the first U.S. cross-border equity crowdfunding offering utilizing general solicitation under the new Rule 506(c) exemption created by the JOBS Act, leading many to see potential for the JOBS Act to improve access to capital and create jobs not just in the U.S. but also abroad. The cross-border raise will be offered online via Optimize Capital Markets in Canada and CircleUp in the United States, allowing Canadian and U.S. accredited investors the opportunity to purchase shares of WAFU through registered online equity crowdfunding platforms in each of their respective countries. What makes this offering so unique is the use of general solicitation on a simultaneous cross-border online equity crowdfunding raise in the U.S. and Canada, which has never been done since the passage of the JOBS Act.
“A publicized cross-border equity crowdfunding raise could not be done before the passage of the JOBS Act in this way,” says WAFU President and CEO Gil Michel-Garcia. “General solicitation to accredited investors has generally been legal in Canada so long as only accredited investors can invest in the offering. However, in the United States, prior to the enactment of Title II of the JOBS Act, you could never publicly announce your offering, even abroad, because it could potentially invalidate your ability to offer it in the United States in reliance on the private placement exemption normally available under Rule 506 of Regulation D. With the enactment of Title II of the JOBS Act and the new Rule 506(c) of Regulation D, companies can now publicly announce an offering like this in both the U.S. and Canada. This will be a boon for small and medium sized U.S. and Canadian companies looking to access capital in the United States,” adds Mr. Michel-Garcia.
As of Monday, October 6, WAFU Inc., the maker of WAFU® Japanese-style dressings and mayonnaises, will be listed on Optimize Capital Markets, a Canadian equity crowdfunding portal for accredited and institutional investors, as well as Circle-Up, the premier accredited investor equity crowdfunding portal for consumer packaged goods companies in the United States.
“I believe that accredited investor equity crowdfunding is the best way for small fast growing companies like WAFU to raise $1 to $2 million in capital while at the same time increasing the recognition and geographic penetration of their brand and their products. For us, equity crowdfunding is not just about the money, it's also about turning consumers into shareholders,” states Mr. Michel-Garcia.
WAFU, based in Montreal, Canada, is no stranger to equity crowdfunding. In 2013, it was the first Canadian company to successfully complete an online U.S. equity crowdfunding, also through CircleUp under the old Regulation D, prior to the legalization of general solicitation under Title II of the JOBS Act.
About WAFU Inc.
WAFU Inc. is a Canadian privately held corporation based in Montreal, Quebec. Founded in 2006, WAFU Inc. develops, produces and distributes a line of Japanese dressings and mayos under the WAFU® brand name. WAFU® Japanese dressings and mayos are now one of the leading brands of Japanese-style dressings and mayos in Canada and are growing in popularity in the United States (for the fiscal year ended December 31, 2014, sales of WAFU products increased a little more than 30% YOY to approximately CAD$1.9 million).
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This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities of WAFU Inc. in the United States, Canada or any other jurisdiction. None of the securities of WAFU Inc. have been or will be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirement of the U.S. Securities Act.
This news release is intended for distribution in Canada and the United States only and is not intended for distribution and/or dissemination in any other jurisdiction.
Caution Regarding Forward-Looking Information
WAFU's public communications may include forward-looking statements within the meaning of applicable securities laws in Canada and the United States. Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties. Forward-looking statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Actual results may differ materially from results indicated in forward-looking statements due to a number of factors, including without limitation, the effect of general economic conditions, decreases in demand for WAFU’s products, increases in raw material costs, fluctuations in selling prices, adverse changes in general market and industry conditions, the ability to reduce operating costs and secure financing, employee and labour relations, currency exchange, interest rates and competition. Any forward-looking statements contained in this news release represent WAFU's expectations as of the date of this news release and are subject to change after such date. However, WAFU disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.