In addition to accredited investors who meet financial qualifications; Friends, Family, and Business Associates can be considered accredited investors under the 45-106 accredited investor exemption.
To invite an investor to your private issuance, click the settings wheel of your account.
Click "Manage Private Investors"
Click "Invite Investor"
Input the email of the person you want to invite to the private issuance. Make sure you hit enter to add them to the list you want to invite.
Select the Accredited Qualification in the "Accredited status" dropdown
What are the different Friends and Family Categories?
- a director, executive officer or control person of the issuer, or of an affiliate of the issuer,
- a spouse, parent, grandparent, brother, sister, child or grandchild of a director, executive officer or control person of the issuer, or of an affiliate of the issuer
- a parent, grandparent, brother, sister, child or grandchild of the spouse of a director, executive officer or control person of the issuer or of an affiliate of the issuer
- a close personal friend of a director, executive officer or control person of the issuer, or of an affiliate of the issuer
- a close business associate of a director, executive officer or control person of the issuer, or of an affiliate of the issuer
- a founder of the issuer or a spouse, parent, grandparent, brother, sister, child, grandchild, close personal friend or close business associate of a founder of the issuer
- a parent, grandparent, brother, sister, child or grandchild of a spouse of a founder of the issuer
- a person of which a majority of the voting securities are beneficially owned by, or a majority of the directors are, persons described in paragraphs (a) to (g), or
- a trust or estate of which all of the beneficiaries or a majority of the trustees or executors are persons described in paragraphs (a) to (g).
Investors (except those from Saskatchewan) using this exemption will need to sign Schedule B and Schedule C of the subscription agreement template
Saskatchewan investors will sign Schedule D of the subscription agreement template
Each financially qualified accredited type is defined as follows:
(d) except in Ontario, a person registered under the securities legislation of a
jurisdiction of Canada as an adviser or dealer
(e) an individual registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d),
(e.1) an individual formerly registered under the securities legislation of a jurisdiction of Canada, other than an individual formerly registered solely as a representative of a limited market dealer under one or both of the Securities Act (Ontario) or the Securities Act (Newfoundland and Labrador),
(j) an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $1,000,000 CAD
(j.1) an individual who beneficially owns financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $5,000,000 CAD
(k with OR without spouse) an individual whose net income before taxes exceeded $200,000 CAD in each of the 2 most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 CAD in each of the 2 most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year
Once invited, private investors will automatically appear in all future private issuances under your addy Business account. To manage or remove investors from your issuances, go to the "Manage Investors" tab within the property and deselect any investors you do not want included in the issuance.
