Gray Aqua Group of Companies, Re is a case from New Brunswick that dealt with the remedy of substantive consolidation under the Bankruptcy and Insolvency Act (BIA). Historically, courts have shown reluctance in granting consolidation and it was seen as an extraordinary remedy.
Several Canadian securities regulators, including those in Nova Scotia and New Brunswick, have been busy formulating a structure to make it possible to purchase and sell securities through crowdfunding.
Equity crowdfunding provides an innovative, fresh and new opportunity for entrepreneurs to fund their start up corporations in New Brunswick. However, the legal implications and ramifications can be complicated. Outlined below are a few issues that any entrepreneur will want to consider before entering the equity crowdfunding universe.