Free to Trade: Securities Issued Under Reg A+ May Trade in Canada

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Crowdfund Insider | JD Alois | Dec 24, 2017

One of the attractive aspects of Reg A+, as created by the JOBS Act of 2012, is the fact issuers may immediately trade securities following a funding round. This has led to a growing number of SMEs to raise capital under Reg A+ and quickly list shares on NYSE, NASDAQ or OTC Markets.

As the rule is still quite new, regulators continue to adapt to the new exemption. This holds true for Canada, a country that has leveraged Reg A+ for cross border funding rounds.

Earlier this week, the Ontario Securities Commission (OSC) published a document recognizing the ability for Reg A+ issues to trade immediately as well.  The approval was noted in a tweet by Alixe Cormick, a Canada based securities attorney and a leader in the crowdfunding movement.

See:  How to Effectively Market an Equity Crowdfunding/Reg A+ Offering

While not a major change, the approval brings “greater certainty to cross-border activities” while making Reg A+ more amenable to issuers. While the Canadian securities market is governed by multiple provincial regulators, Ontario is the financial center and other provinces should follow suit.

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The National Crowdfunding Association of Canada (NCFA Canada) is a national non-profit actively engaged with social and investment crowdfunding, alternative finance, fintech, peer-to-peer (P2P), initial coin offerings (ICO), and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, networking opportunities and services to thousands of community members and works closely with industry, government, academia and eco-system partners and affiliates to create a vibrant and innovative fintech and online financing industry in Canada.  For more information, please visit:  ncfacanada.org

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