BCSC educates companies about BC’s money raising rules

The BC Securities Commission is reaching out to small businesses around the province with new online materials and province-wide presentations aimed at informing small businesses about BC’s capital raising rules.

The BCSC’s publication, Capital Raising for Small Business, is a free guide available for download. It covers a range of topics, including:

• Defining a security and the key principles of securities laws
• Discussing differences between the private placement market and public capital markets
• Explaining exemptions and how they apply when raising capital

The guide also features a section that discusses the information investors should seek before investing in a small business, which includes:

• information on the full legal names of the company’s directors and officers so that they can conduct background checks
• a comprehensive set of financial statements showing the company’s financial position, operating history, and cash flow (ideally audited)
• the purpose for which the business is raising money and whether the planned fundraising will provide sufficient funds
• a business plan including how the company will make money and within what time period

For a preview of the guide, you can view a short animated video on the BCSC’s new YouTube page (BCSC4Industry). You can download the guide from the BCSC website at www.bcsc.bc.ca.