A new OSC Initiative Provides Lawyers with a Finance or M&A Practice Expanded Opportunities to Invest in Private Ontario Companies

In May, the Ontario Securities Commission (OSC) announced a set of initiatives it is testing to support early-stage capital raising for Ontario businesses. The initiatives include an extension of Ontario Instrument 45-507 Self-Certified Investor Prospectus Exemption (Interim Class Order) (the Self-Certified Investor Prospectus Exemption), which permits Ontario investors who may not meet the accredited investor financial criteria, but have qualifying education or work experience, to invest in private Ontario businesses.

Individuals admitted to practice law in a jurisdiction of Canada where at least 1/3 of their practice has involved providing advice in respect of financings involving private or public distributions of securities or mergers and acquisition transactions, qualify as investors under the Self-Certified Investor Prospectus Exemption.