While the legal requirements for the contents and receipting of offering statements are set-out in the Co-operative Corporations Act (CCA) and regulations, the following tips may be helpful for making a submission.
- Remember your audience: full, true and plain disclosure to investors is required. What may have previously been considered full disclosure may no longer be sufficient in today’s marketplace:
- Full: the offering statement should answer any questions an investor might reasonably have
- True: it should disclose all pertinent information and sources
- Plain: It must be easily understood by potential investors
- Submit FINAL copies only - drafts will be returned
- Ensure all documents display original signatures
- Identify critical dates and timing issues
- Submit payment of $50, payable to the Financial Services Regulatory Authority (FSRA)
- Provide a cover letter with email address, telephone number and mailing address
- Summarize key features of all material agreements, including project financing, project details and escrow agreements
- Submit two original copies of the offering statement and supporting materials. If providing interim or audited financial statements, please indicate the accounting standards used to prepare them
- Ensure the submission is free of typos, adding errors, omissions and mistakes
- Use templates provided by your co-operative association as a guide
- Proceed with your project only after the receipt has been issued
- Build in sufficient approval time when planning your business activities