Crowdfunding Industry Overview

Appendix 1: OSC Exempt Market Review Dec 2012: OSC Staff Consultation Paper 45-710 • • $1.5 million in any 12 month period $2.5k in any single deal up to $10k in any 12 month period Incorporated in Canada and head office located in Canada Advertising restriction to only the portal and issuer's website Not available to investment funds or complex securities Investors can only re-sell securities under existing prospectus exemptions; they are illiquid investments Sign a risk acknowledgement and 2 day cooling off period Disclosure at point of sale (financing, issuer and risk factors) Deal is <$500K mgt certified statements; >$500k audited Portal regulation unclear but will have to register (gatekeeper) Link to OSC Exempt Market Review (Consultation Paper): http://www.osc.gov.on.ca/documents/en/Securities-Category4/sn 20121214_45-710 exempt-market-review.pdf Link to NCFA Canada response: http://www.ncfacanada.org/ncfa-canada-equity-crowdfunding-principles-response-to-osc-staff-consultation-paper-45-710/ Slide | 35 Employment and Social Development Canada NCFA Michal Chowdurcing Association Canara

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