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Businesses in Alberta and Saskatchewan will now have greater access to capital due to a new prospectus exemption adopted by both the Alberta Securities Commission (ASC) and Financial and Consumer Affairs Authority of Saskatchewan (FCAA).

Businesses in those provinces can now raise up to $5 million from the public, a release said, “using a simple, streamlined offering document.” There also are tiered offering limits that are tied to whether investors receive financial statements.

Higher investment limits are only possible for individuals when “financial statements are provided or if the investor either has a certain minimum income or has received investment advice from a registered dealer,” the release said, noting limits aren’t applicable if investors qualify under “certain other common prospectus exemptions.”

The exemption is being offered on a pilot basis for three years, and is part of an effort by the two regulators to support innovation.

“This initiative is intended to address challenges faced by small and early stage businesses in accessing capital, while still addressing investor protection,” said Roger Sobotkiewicz, chair and CEO of the FCAA.

The new exemption joins the self-certified investor prospectus exemption adopted by the two provinces in March 2021.