FAQs

Questions about Investing? Start Here!

Using Loxley

Can I Trust Loxley?

At Loxley, we look to build a trusted brand, rooted in our core values of innovation, education, simplicity, empowerment, trust and transparency. Loxley is registered as an Exempt Market Dealer with the Provincial Securities Commissions in Canada. We are proud that Canadian securities legislation maintains the highest level of integrity in its governing and monitoring of Canadian businesses, which helps protect those investing in these companies.

How secure is my information on the Loxley platform?

All Loxley traffic is sent over an encrypted, ‘https’ connection. All personal information is encrypted before being stored on our secure server. We are legally required to adhere to the latest security standards.

Who is given access to my information?

Loxley.ca may share your personally identifiable information with third parties for the purpose of providing services to you, such as ID verification or data storage as well as security related to our operation of the Site. Those business partners have all agreed to uphold the same standards of security and confidentiality that we’ve promised to you in our Privacy Policy; and they will only use your personally identifiable information to carry out their specific business obligations to us.

Will I be charged any fees as an investor through Loxley?

No! The amount you invest will go solely to purchasing shares. Loxley receives compensation from the companies raising capital through the Loxley platform.

Where do I start?

You will have access to the information you need on all the investments you are interested in as soon as you click the “Invest Now” button. After filling out our Know Your Client form (this is mandatory paperwork required by law) you will have access to our ” Deal Room” where you will be able to view the offering memorandums, subscription agreements etc. for all our offerings. Once you are satisfied with your choice of investments you will be given the opportunity to pledge your investment. At this point one of our Alternative Investment Advisors will contact you to review suitability and answer any further questions. Our Investor Success Team is there to make investing in private companies with Loxley as painless as possible. They are all registered with your provincial securities commission and they are experts in the private capital markets.

Investors

How do I know if an investment is suitable for me?

Before investing you should always understand the risks involved and be sure that the investment aligns with your personal and financial circumstances, your overall tolerance for risk and your goals. Loxley will always conduct a suitability analysis of your proposed investment based on your investor profile, which you will be asked to complete for your first investment and confirm that it is up-to-date for any subsequent investments. This is done in accordance with Canadian securities regulation. If your investment is deemed suitable, one of our Alternative Investment Advisor’s will send you the investment documents for you to sign. If your investment is deemed unsuitable, a member of Loxley’s Investor Success Team will contact you to outline the options available to you.

How does Loxley screen the investment opportunities?

Loxley conducts due diligence on a company before they start a capital raising campaign through Loxley and distribute securities. Loxley’s due diligence approach includes document analysis, management interviews, financial statement analysis, background checks, expert input where deemed necessary and an assessment of the investment product and associated risks. The final step of the analysis process is a formal review by Loxley’s Investment Review Committee that consists of internal and external members of the financial industry. Subject matter experts may be consulted by the investment Review Committee.

What is Loxley Financial Inc?

Loxley is an Exempt Market Dealer with a proprietary investor funding platform designed to provide quality, private capital investment opportunities to Canadian investors.

What types of offerings do you provide investors?

Loxley specializes in Private Capital Market securities. We offer alternative investments in the form of Private Equity funds, Hedge Funds, REITS, Venture Capital funds, Private Real Estate investments and other unique private investments.

How do I become an investor?

The best way to become an investor is to contact one of our Alternative Investment Advisors. They will provide all the answers and information you could possibly need to make an informed investment decision. They will also perform an unbiased suitability analysis and make sure the investment you have chosen is suitable for you.

Alternatively you can click on the “Invest Now” and register on our site. Registering will give you access to our “Dealroom” which will provide all the necessary documentation and information so you can make intelligent, informed investment decisions. Registering will also allow one of Private Capital investment experts to reach out to you and provide any assistance you may need to make the process as painless as possible.

How thorough is your due diligence process?

Our due diligence process is very thorough. We believe this is one of the things that sets us apart from other Exempt Market Dealers. Loxley leverages the resources and experience of our management group and corporate finance department to provide up to date information regarding the management and financial condition of issuers, valuation expectations and other pertinent information for you to make informed in-vestment decisions.

How safe is my information?

We utilize the services of Citrix for signature information and Dealpoint for all our data storage which are both complaint.

Is your company a registered investment dealer?

Yes. All securities related activity is conducted through Loxley Financial Inc. which is a registered Exempt Market Dealer registered in all Western Canadian Provinces and we are also a proud member of Private Capital Market Association, the National Crowdfunding and Fintech Association of Canada, and the Canadian Venture Capital Association

Do you allow non-accredited investors the opportunity to invest?

Yes, there are numerous avenues for non-accredited investors to invest in private capital investments. Use the contact form to reach out to one of our Alternative Investment Advisor’s and they will walk you through the necessary securities regulations and coordinate your investments to match your investor profile.

What is your process for vetting companies that are raising capital on your platform?

Loxley uses an internal screening system based on objective market data in an effort to offer the highest quality deals to our investment community. Our screening process is very thorough. Our reputation depends on the quality of our offerings and we take the due diligence and underwriting process very seriously. We do our best to leave “no stone unturned”.

How does the process work once I make an investment and the company reaches its goal of a total minimum funding amount?

Funds are released to the company after all closing documents are signed. These funds are utilized via the uses of funds detailed in the offering memorandum.

What happens to my funds if I invest and the company does not surpass the minimum required amount?

Your investment will be returned to you in full.

Do you work with companies outside of Canada?

Yes.

What are the risks of investing in private companies?
  1. Risk of Loss – Investments in private companies are generally high-risk investments, there is the chance that you may lose your entire investment.
  2. Liquidity Risk – There is currently no marketplace in which to sell shares in private companies freely. There is the possibility that you will never be able to sell your shares.
  3. Lack of Information – Although we urge companies to keep their shareholders updated on a regular basis, there is no legal requirement for companies to provide ongoing information about their company to shareholders.
  4. Investment Risk – Risks that are specific to the securities being offered. These will be outlined in the Offering Document if one is available.
  5. Issuer Risk – Risks that are specific to the private company.
  6. Industry Risk – Risks faced by the private company because of the industry in which it operates.
How secure is my information on the Loxley platform?

All Loxley traffic is sent over an encrypted, ‘https’ connection. All personal information is encrypted before being stored on our secure server. We are legally required to adhere to the latest security standards.

Who is given access to my information?

Loxley.ca may share your personally identifiable information with third parties for the purpose of providing services to you, such as ID verification or data storage as well as security related to our operation of the Site. Those business partners have all agreed to uphold the same standards of security and confidentiality that we’ve promised to you in our Privacy Policy; and they will only use your personally identifiable information to carry out their specific business obligations to us.

Will I be charged any fees as an investor through Loxley?

No! The amount you invest will go solely to purchasing shares. Loxley receives compensation from the companies raising capital through the Loxley platform.

How can I make money on my investment?

Typically there are three ways in which you may see a return on your investment: 1) The company is acquired by another company, at which point you would sell your shares; 2) The company goes public on a stock exchange, at which point you may sell your shares on the open market; Or 3) The company generates excess cash and decides to issue dividends to their shareholders.The companies ‘Offering Document’ and ‘Shareholders Agreement’ will outline any specific sale restrictions on your shares.

What is required from the company in order for residents of Quebec to invest?

In order for companies to accept investments from residents of Quebec, they must make any applicable Offering Document available in French

What is the Private Capital Market and how does it differ to the Public Markets?

The private capital market allows companies to raise capital without going through the lengthy and expensive process of preparing a prospectus (A prospectus is an extensive offering document used by public companies to provide details about their business, financial situation and the investment opportunity). This allows early-stage and growth companies to expand their business with quick and easy access to capital, and it gives investors the opportunity to become an owner in the business while the valuation of the company is still relatively low. Unlike the public markets, shares in private companies can not easily be sold or exchanged for cash. Therefore, long holding periods are expected before an investor can sell their investment. Due to the volatile nature of early-stage businesses, their shares are considered high risk investments. It is important to note the relationship between risk and return – ‘the higher the risk of an investment, the higher the potential return’.

Who determines the valuation?

Loxley does not determine a company’s valuation. Companies develop their own methods (we provide some material and guidance based on your industry) for determining their valuation prior to our due diligence process. All valuations are reviewed and discussed while in the due diligence phase in order to ensure a fair valuation is established for both the company and investors.

Why are businesses looking for capital?

Businesses are looking for opportunities to grow in order to serve more customers and extend their reach. Capital is an integral element for companies to achieve this in a faster way than simply relying on generating profits and reinvesting in their business. Thus, businesses have specific reasons for raising capital, but the most common purpose is to enhance their product, grow their team, or increase production or distribution.

Do you only work with Private companies?

Loxley is an Exempt Market Dealer, meaning we have a special license that allows us to work both with private and public companies to access to all applicable prospectus exemptions across Canada.

What type of industries does Loxley work with?

Loxley is more concerned with the quality of the management team and the viability of the offering than the industry the company operates in. We review each business individually based on its merits. We believe in creating a mutually beneficial partnership that serves everyone in order to have the greatest success for all.

How much money can investors invest?

Investor limits are determined based on the exemptions that you are using to raise capital. Here is a brief summary of the exemptions, for a full explanation please refer to our Securities Regulation Page.

The Offering Memorandum exemption investors depends on the provincial residence of the individual. BC investors have no limit, investors who live in the rest of Canada have a limit of $10,000 unless they satisfy additional investor criteria.

There are no investor limits for investors who are investing under the Accredited Investors, Family, Friends, and Business Associates exemptions.

The Process of Investing

What Does “No Closing Minimum” mean?

When a company chooses to set no closing minimum, any amount of money invested will be closed regardless of the overall amount achieved. The amount used to determine the percentage on the tracker is the target amount, which is the amount set by the company to indicate the desired amount they are looking to raise. Please note that this does not require the company to meet this amount in order for your investment to be processed.

What are rolling closes?

Once a company surpasses their minimum fundraising goal, they have the option of closing individual investors and converting them into shareholders. This can be done multiple times before the end of the overall campaign. Every time new investors are accepted this is called a close and companies that have several closings are considered to have rolling closes.

What confirmation do I receive when paying via Wire Transfer, Direct Deposit or Sending a Cheque?

Once funds have been received and accepted by Loxley, a confirmation will be sent to the investor via email. Payments may take up to one business day to process once received.

What happens if the ID verification fails through Dealpoint?

If Dealpoint is unable to verify your identity, you will be asked to upload a downloaded version of a utility bill and of a financial statement. These documents can not be screenshots or photos and must clearly show your name and address on one and name and financial institution on the other.

What is needed for investing through a registered account (RRSP/TFSA)?

If the investment opportunity has been approved to accept investments through registered accounts, it will be indicated in the ‘Investment Highlights’ under a company’s overview and the option will be made available when making an investment. An investor that wishes to use a registered account to make the investment needs to have or open an account with Computershare, Loxley will facilitate the opening of an account at Computeshare. The costs involved with opening an account at Computershare are a $135 annual (recurring) fee and a $75 transactional fee. All investments through registered accounts must be submitted no less than 3 weeks before the scheduled closing date of the company’s campaign.

Who should I contact if I have questions for the company I’m interested in?

All questions regarding an investment or specific company should be directed to Loxley during an active campaign. A Loxley representative can be reached through the chat feature on the Loxley website

, by sending an email to support@Loxley.com or by calling 1-800-804-1524.

Why do I have to upload a copy of a bank statement and utility bill?

We are required by the Canadian Securities Commission to verify the identity of each investor that uses the Loxley platform. This is done for the security of each investor and the companies that they invest in. You will only be asked to upload these statements if your information can not be verified automatically through our online process.

Why do I have to verify my identification?

As an exempt market dealer, we are required to verify the identity of each investor for the protection of both the companies and investors. For this process we use Trulioo to verify your identity against two reliable sources. Don’t worry, this has nothing to do with your credit score and this will not be impacted.

Where do I start?

You will have access to the information you need on all the investments you are interested in as soon as you click the “Invest Now” button. After filling out our Know Your Client form (this is mandatory paperwork required by law) you will have access to our ” Deal Room” where you will be able to view the offering memorandums, subscription agreements etc. for all our offerings. Once you are satisfied with your choice of investments you will be given the opportunity to pledge your investment. At this point one of our Alternative Investment Advisors will contact you to review suitability and answer any further questions. Our Investor Success Team is there to make investing in private companies with Loxley as painless as possible. They are all registered with your provincial securities commission and they are experts in the private capital markets.

Getting Started

How do I know if an investment is suitable for me?

Before investing you should always understand the risks involved and be sure that the investment aligns with your personal and financial circumstances, your overall tolerance for risk and your goals. Loxley will always conduct a suitability analysis of your proposed investment based on your investor profile, which you will be asked to complete for your first investment and confirm that it is up-to-date for any subsequent investments. This is done in accordance with Canadian securities regulation. If your investment is deemed suitable, one of our Alternative Investment Advisor’s will send you the investment documents for you to sign. If your investment is deemed unsuitable, a member of Loxley’s Investor Success Team will contact you to outline the options available to you.

How does Loxley screen the investment opportunities?

Loxley conducts due diligence on a company before they start a capital raising campaign through Loxley and distribute securities. Loxley’s due diligence approach includes document analysis, management interviews, financial statement analysis, background checks, expert input where deemed necessary and an assessment of the investment product and associated risks. The final step of the analysis process is a formal review by Loxley’s Investment Review Committee that consists of internal and external members of the financial industry. Subject matter experts may be consulted by the investment Review Committee.

How do I know if I can invest in a company?

Residents of BC, AB, SK, MB, ON, QC, NS and NB, over the age of 18, may currently be eligible to invest through Loxley. Your ability to invest in a specific company depends on the location of the company’s headquarters, and the securities law in each province.

Each campaign will indicate which provinces the company may accept investments from in the information bar on the right-hand side of their campaign page. For more information on investor eligibility, please visit our Regulation page.

Is there a limit to how much I can invest?

Investment limits are dependant on your province of residence, financial standing and relationship with the company. Your investment limit is calculated on the first page of the investment process, after clicking ‘Invest Now’ on a company Current Offerings.

What tools are available for me to evaluate a company?

It is important to make an informed investment decision. That is why each company provides an introductory video, their business and investment highlights, and an introduction to their team. Often, a company will also make an offering document available in the ‘Documents’ tab of the campaign page. The offering document is an in depth look into the business; including a look at the applicable risks and the use of funds raised. It is also wise to do your own internet research on the company’s business and industry.

Now That You're an Investor

Do I need to file anything for my taxes when making an investment through Loxley?

For the purchase of any investment, there is no tax event – therefore, there is no filing requirement or tax implication. Only in the event that you receive income or a capital gain from your investment will you need to file anything with your taxes. In this event, the company that you hold the shares in will distribute the necessary T3 or T5 forms to it’s shareholders.

How can I stay up to date with the company I invest in?

It is important to stay up-to-date on a company you invest in, not only to monitor their growth and success, but also to promote their developments throughout your network and help to fuel their success. Besides following the company on social media, each shareholder will be invited to the company’s mandatory Annual General Meeting. All of Loxley’s clients provide regular, comprehensive updates via an online investor portal as well as a quarterly newsletter.

I qualified for a tax credit on my investment (e.g. EBC tax credit or the Alberta tax credit) how do I make sure to get this?

The availability and details of any tax credit on an investment will be outlined in the company’s Offering Document. If you are eligible for a tax credit on your investment, the company you invest in will file your signed Share Purchase Report (included in the investment documents) with the appropriate provincial government, on your behalf. Once the forms have been processed, the provincial government will provide a tax form to the company to pass along to their shareholders. Once received, this form should be filed along with the rest of your taxes. It is important to note that the tax credit is taken from a budgeted pool of capital, which means that the tax credit is not guaranteed and is dependant on the funds available in the government’s pool of capital.

What happens at the end of a successful campaign?

Once a campaign closes successfully, the company will conduct their closing responsibilities to finalize the investments and accept their new shareholders. As the investor, you will receive an email from Loxley once the investment has been finalized. A copy of the Trade Confirmation, the investment Share Certificate and the fully executed investment documents will be accessible through the ‘Investments’ tab of your account page on Loxley, under each completed investment.

Who is given access to my information?

Loxley.ca may share your personally identifiable information with third parties for the purpose of providing services to you, such as ID verification or data storage as well as security related to our operation of the Site. Those business partners have all agreed to uphold the same standards of security and confidentiality that we’ve promised to you in our Privacy Policy; and they will only use your personally identifiable information to carry out their specific business obligations to us.

Will I be charged any fees as an investor through Loxley?

No! The amount you invest will go solely to purchasing shares. Loxley receives compensation from the companies raising capital through the Loxley platform.