Closing is the process that takes place after the equity crowdfunding round has ended.
After a successful campaign has closed, there is still some additional work to do before all the capital is released to you. Equivesto will provide you and your lawyer with several additional documents noting the new shareholders and the number of shares needing to be issued. Now it is finally time to issue the new shares.
Equivesto’s platform also stores digital copies of the signed share purchase agreements, investor risk disclosure forms, and joinder agreements which you can download at any time. The company should now amend the Articles of Incorporation again to issue exactly the number of new shares needed from the right share class. Once those shares are issued, the Board of Directors can now issue a Corporate Resolution authorizing the sale of the shares for cash to the new investors.
While this sounds complicated, Equivesto has templates of some of these documents, and it is as simple as signing two forms once your lawyer has prepared them. With everything confirmed and signed off, the funds (minus Equivesto’s 7% success fee) can now be transferred into your company’s bank account.
Within 30 days after closing, its also critical to prepare the Report of Exempt Distribution (which Equivesto will again assist with) and file that alongside the Crowdfunding Offering Document with each provincial securities regulator.
The first two weeks after the closing of your campaign may feel a bit hectic, but with you, your lawyers, and Equivesto all working together, all the documents will be prepared and filed in no time.
Learn more about the reporting requirements here.
Learn more about the whole process here.