Equity Investors Incentive
$200,000
Prince Edward Island
Description:
The Equity Investors Incentive provides new and expanding businesses in Prince Edward Island with a tool to encourage and attract private sector investment. The program provides a non-repayable incentive to investors to encourage investment in an approved Prince Edward Island-based investee business by increasing the return-on investment to investors.
Comments on Funding:
The incentive is in the form of a direct rebate to investors (individuals or companies) and is calculated at up to 20 percent of the purchase price of the equity investment in the investee company. The maximum investors’ rebate for all eligible investors will not exceed $200,000 per approved investee company.
Continuous Intake
Eligibility:
Applicants must be:
1. In consultation with Innovation PEI prior to submitting an application;
2. taxable, private Canadian corporation;
3. registered to do business in Prince Edward Island;
4. head office and its primary business operations in Prince Edward Island;
5. in operation in PEI for a minimum of one year;
6. provider of exportable goods or services in one of the following strategic sectors:
a. bioscience
b. aerospace and defence
c. advanced manufacturing and processing
d. renewable energy and clean technology
e. information and communications technology
f.creative and cultural industries
g. first-of-its-kind exportable goods or services in other sectors may be considered.
7. pays at least 75% of its payroll to employees residing in Prince Edward Island;
8. has fewer than 50 employees;
9. has assets less than $10 million;
10. ensures compliance with securities legislation;
11. has a well-developed business plan and demonstrates appropriate use of funds raised to support expansion and/or ongoing operations in Prince Edward Island;
12. does not have any defaulted outstanding debt obligation on file in the Government of Prince Edward Island Central Default Registry.
Application Steps:
Applicants must apply through this link; https://services.princeedwardisland.ca/en/service/business-development-application-form#/service/GenericWebformSubmission/GenericWebformGenerateTransactionID
Documentation Needed:
Applicant must submit:
1. financial statements for its last taxation year;
2. income tax returns for its last taxation year;
3. articles or other constating documents;
4. list of directors and officers;
5. a list containing the names of each individual of the company (where known) to whom the
investee company intends to issue a share and the social insurance number, business number, occupation, and residential address of each such individual/company;
5. copy of the opinion, from a person entitled to practice law in Prince Edward Island, confirming that the issuance of the share is in accordance with Prince Edward Island securities legislation;
6. a business plan containing a complete description of the investee company’s activities, estimates of anticipated receipts from qualified shares and investments that are not qualified, and a description of the intended use of the funds raised from the issuance of the identified investments.
About the author
Maurice