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This mechanism will be only available to Alberta investors and requires a scaled-down offering memorandum and an acknowledgment of the associated risk — the investor could lose the entire amount. The possible downside is that there is no liquidity associated with this funding mechanism, which means the units or shares can’t be traded in what is called a grey market. The liquidity event comes when the company grows to the point of raising a significant amount of money privately, which creates the grey market, if it goes public or is sold to another entity.

The second capital-raising avenue introduced on Tuesday is one of facilitating corporate crowdfunding in Alberta, which already exists in other provinces, including British Columbia, Ontario, Saskatchewan, Quebec, Manitoba, Nova Scotia and New Brunswick.

The crowdfunding option allows for companies to raise $2,500 from individuals to a maximum of $25,000, if the investor is deemed to be qualified. The maximum that can be raised in any given year is $1.5 million, there is no aggregate limit for the management group and money can come from outside Alberta.

That said, the raising of the funds under this scenario must come through a funding portal, which is registered with the ASC. Think of it as something along the lines of a virtual investment dealer, with one of the big differences being it does not risk any capital; it’s simply a vehicle for distribution.

While Alberta might be a bit late to the crowdfunding option, which is currently under a 30-day comment period, ASC 45-417 is another illustration of the financial minds in the province thinking about new ways to raise capital for new ventures that has been going on since the 1970s.