News Release

ASC adopts new small business finder’s exemption to facilitate capital raising

Nov 10, 2021

CALGARY – November 10, 2021 - The Alberta Securities Commission (ASC) today adopted a new registration exemption for finders to help start-ups and other small businesses in Alberta raise capital. 

The new small business finder’s exemption is intended to help small businesses use finders to raise money. It replaces ASC Blanket Order 31-505 Registration Exemption For Trades In Connection With Certain Prospectus-Exempt Distributions (known as the northwestern exemption) and provides a more targeted exemption from the dealer registration requirement for finders. The new exemption includes a number of  conditions and better integrates with prospectus exemptions that small businesses in Alberta can rely on.

“This new exemption follows the self-certified investor prospectus exemption and the small business financing prospectus exemption we adopted to address challenges faced by small and early stage business in accessing capital,” said Stan Magidson, Chair and CEO of the ASC. “We recognize that it can be very difficult to find a registered dealer that is willing to help raise money for financings under $5 million. This exemption allows small businesses to use finders to help them identify potential investors, as long as they adhere to specific conditions.”

Details of the new exemption are set out in ASC Notice of Implementation of ASC Blanket Order 31-536 Alberta Small Business Finder’s Exemption and ASC Blanket Order 31-536 Alberta Small Business Finder’s Exemption.

The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.

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Theresa Schroder
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