Crowdfunding Industry Overview

Appendix 3: Proposed BC CF Exemption Feb 2013: National Instrument 45-106 Proposed Prospectus Exemption to Assist Capital Raising by Small Businesses • The issuer need only include unaudited financial statements prepared using private enterprise GAAP in the offering memorandum and comply with these conditions: Issuer group cap < $500,000 Investor cap of < $2,000 in any 12-month period Issuer is not a reporting issuer, investment fund, mortgage investment entity or real estate issuer Issuer cannot distribute complex securities OM contains a bold warning on the front page Link to BCSC Proposal: http://www.ncfacanada.org/national-instrument-45-106-proposed-prospectus-exemption-to-assist-capital-raising-by-small- businesses-request-for-comment/ Slide | 37 Employment and Social Development Canada NCFA Michal Chowdurcing Association Canara

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