Item 5 of the offering document describes the details of the crowdfunding distribution, including details of the securities offered and shareholder rights.
This section focuses on the relationship between the issuer, the funding portal, and investors, ensuring transparency and regulatory adherence throughout the crowdfunding process.
Key Elements Covered:
Funding Portal Engagement:
Section 5.1 highlights the role of the Exempt Market Dealer (EMD) operating the funding portal and its partnership with technology providers like addy. This ensures the correct operation and legal compliance of the platform.
Offering Jurisdictions:
Section 5.2 manages where the offering can be made, with a multi-select dropdown for Canadian jurisdictions. It controls which provinces and territories can legally invest in the offering and ensures proper documentation for regions like Quebec, where French documents are required.
Offering Requirements:
Sections 5.3 to 5.9 detail essential conditions for a successful offering, including the minimum capital raised, the types of securities offered, rights and restrictions attached to those securities, and any conditions on dissolution or conversion. They also cover the total securities issuable and subscription minimums, along with guidance on using other prospectus exemptions to meet offering amounts.