Barbara Hendrickson, of BAX Securities Law, was prominently quoted in a recent article in the Law Times. The article, “CSA’s equity crowdfunding proposals unlikely to draw more investors: securities lawyers”, by staff writer Luis Mullan, discusses the recent Canadian Securities Administrators (CSA) equity crowdfunding proposals. Barbara Hendrickson, while commending the harmonization efforts, believes that the CSA could have increased the limits. “It’s definitely a step in the right direction,” said Ms. Hendrickson, who is quoted in the article. “The question is whether they have raised the limits for issuers to raise per year enough and whether they’ve raised the limit for investors high enough. Equity crowdfunding is an expensive and highly regulated option, pointed out Hendrickson.
“Because under the CSA proposal the amount that individuals can invest is capped at $2,500, it can create a burden on issuers to manage large numbers of investors, added Hendrickson.
“It doesn’t make sense to have to raise $1 million and have hundreds of investors,” said Hendrickson. “It’s not practical from a corporate administration point of view. If they really want to give crowdfunding a head start, look at raising it above $1 million.
The complete Law Times article can be found: https://www.thelawyersdaily.ca/articles/18135/csa-s-equity-crowdfunding-proposals-unlikely-to-draw-more-investors-securities-lawyers
For more information, please call Barbara Hendrickson at BAX Securities Law (416) 601 -1004.
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