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.
Suggested Reading
BC Securities Enforcement Roundup – August 2013
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