The Ontario Securities Commission (OSC) recently provided an update on OSC TestLab: Early-Stage Capital Raising (Early-Stage Capital Raising), a set of initiatives to support capital-raising for early-stage Ontario businesses announced in May 2024.
OSC TestLab (TestLab) is an OSC testing program for capital market innovations and new approaches to regulation aimed at fostering innovation and competition in Ontario’s capital markets.
The feedback received from TestLab participants and stakeholders provided valuable insights that informed an update and extension of the initiatives, including a new OSC blanket order. The feedback received was also considered in launching a consultation by the Canadian Securities Administrators (CSA) regarding its recent proposed harmonized multilateral self-certified investor prospectus exemption.
TestLab evaluates capital market innovations and new approaches to regulation in Ontario’s capital markets. Since launching Early-Stage Capital Raising initiative in May 2024, TestLab has consulted with over 500 stakeholders for feedback on various initiatives through surveys, focus groups, roadshows, and one-on-one engagements. This includes early-stage businesses, angel investor groups, exempt market dealers, legal and advisory professionals, and innovation hubs.
The OSC has recently updated and extended the Not-for-Profit Angel order and Early-Stage Business Registration exemption, subject to ministerial approval. In addition, the OSC has introduced a local blanket order providing a Self-Certified Investor Prospectus exemption effective October 25, 2025. The OSC’s local order is consistent with the harmonized Self-Certified Investor Prospectus Exemption that was recently announced by the CSA.
TestLab will continue to collect information to help evaluate the updated initiatives and invite perspectives from the participating businesses and investors and other key stakeholders in the early-stage capital-raising ecosystem.
For more information about OSCTestLab and its current initiatives, click here.
For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.
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