These changes to the law will help small businesses grow and thrive, and help jump start the Canadian economy
Tampa, FL (PRWEB) March 24, 2014
Crowdfunding attorney Kendall Almerico discussed how four new proposals by the Ontario Securities Commission will change investing in Canadian startups. In addition to the equity crowdfunding provision, three additional laws will make it far easier for Canadian companies to raise private funds to start or grow their businesses.
"The Ontario Securities Commission has taken four very positive steps towards opening up investment for small businesses in Canada's most populated province," crowdfunding expert Almerico says. "These changes to the law will help small businesses grow and thrive, and help jump start the Canadian economy."
The four proposed changes, now under a 90 day review while public comments are accepted, are as follows:
1. A new exemption that would allow startups and new businesses to more easily raise capital from friends, family and others within the close networks of the principals of the business,
2. An "equity crowdfunding" exemption that will allow a small business to raise up to $1.5 million from "the crowd" through an online crowdfunding portal that would sell shares in the company online,
3. An exemption that would allow public companies listed on the Toronto Stock Exchange, Canadian Securities Exchange or TSX Venture Exchange to more easily raise funds from existing shareholders based on public disclosures, and
4. An exemption that would allow small businesses to raise capital based on a new disclosure document being made available to investors.
Almerico notes that these new proposals from Ontario's securities regulators would allow small companies to raise capital and issue shares through crowdfunding websites and other simplified means, but also include significant number of restrictive conditions to protect investors. "The regulators have address concerns by investor advocates by adding protections such as requiring equity crowdfunding websites to register with regulators, do background checks on issuers, and disclosure important information," Almerico says. "And sites like FundHub will step in and help the people and businesses of Ontario with the compliance and due diligence to they can use these new laws to raise capital."
About Kendall Almerico
Kendall Almerico is a crowdfunding attorney and JOBS Act attorney with who is considered one of the top crowdfunding experts and influencers in the United States. In 2014, Mr. Almerico was named #17 on VentureBeat's Top 30 most influential leaders in the crowdfunding industry and was the top ranked crowdfunding attorney on this list. Mr. Almerico and his crowdfunding websites have appeared in USA Today, Forbes, Washington Post, Washington Times, Huffington Post, the New York Daily News, Business Insider, Fox Business Network and hundreds of newspaper, blog, radio and television interviews including CNN, CBS, ABC, NBC, FOX and The Sean Hannity Show.
Mr. Almerico is CEO of Fund Hub (http://www.FundHub.Biz) a web site created by securities lawyers to provide compliance and due diligence services for broker-dealers, issuers, investors and equity crowdfunding portals in connection with Regulation D offerings, JOBS Act offerings and other securities offerings.
Mr. Almerico is also the CEO of ClickStartMe, a crowdfunding site that provides individuals and businesses with an easy-to-use website to raise funds through online crowd funding. Mr. Almerico is also the founder of Crowd It Forward, a charity-based crowdfunding site that performs “Random Acts of Crowdfunding” and raises money for people in need through a 501(c)(3) charitable foundation.
Fund Hub (http://www.FundHub.Biz) provides compliance and due diligence services for broker-dealers, issuers, investors and equity crowdfunding portals in connection with Regulation D offerings, JOBS Act offerings and other securities offerings. Fund Hub combines securities industry expertise with state-of-the-art digital tools to affordably provide compliance services and assistance to those raising capital or investing in businesses. Fund Hub fills a significant need in the securities and private financing industry by allowing broker-dealers, investors and issuers to have an economical alternative to compliance service provided by traditional law firms or online companies without the securities industry expertise required for effective SEC compliance.
Kendall Almerico is available for interviews. Contact him at Media(at)FundHub(dot)Biz or call 813.410.4658.