Investor Presentaiton
certificate of registration will be provided to the corporation within 30 days of the date of
registration.
Step 3: Apply for Approval to Raise Additional Equity Capital
After successful registration with the AITC program, EBCs and VCCs are required to submit
applications to raise additional equity capital.
Eligible Business Corporations (EBCs):
Registered EBCs are required to apply for approval to raise all additional equity capital. Approval
will be granted subject to conditions set out in the Investing in a Diversified Alberta Economy Act.
Venture Capital Corporations (VCCs):
Registered VCCs are automatically approved to raise equity capital up to $50,000 (inclusive of
the original $25,000 in equity capital). In order to raise additional equity capital above $50,000 the
corporation must apply for approval.
Step 4: Raise Equity Capital
EBCs and VCCs can solicit investments based on their individual needs.
There are two channels of investment for the program. An investor can either invest
directly in an EBC, or invest indirectly into a small business through the purchase of
equity in a VCC.
An investor is required to purchase shares in the EBC and/or VCC in exchange for Canadian
currency. The EBC or VCC may not issue debt in exchange for capital from investors. Any
investor (including associates and affiliates) must own less than 50 per cent of the voting shares
in the corporation.
The equity capital raised under the program (either as an EBC or as a business receiving an
investment from a VCC) can be used to establish, operate and/or expand an EBC's business.
Equity capital raised under the program cannot be used for:
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•
lending
• payment of debt
•
investment outside of Alberta
other prohibited uses of funds outlined in Section 13 (VCCS) or 48 (EBCs) of the
Investing in a Diversified Alberta Economy Act.
Alberta Investor Tax Credit Program | January 2019View entire presentation