Post-Raise

Can FrontFundr help me keep investors updated even after the campaign has closed?

Yes, FrontFundr can help you with sending quarterly shareholder updates to investors after your campaign has closed. FrontFundr will distribute these updates through the FrontFundr platform and we also have the ability to add any shareholders who were not closed through FrontFundr to the recipient list.

FrontFundr will meet with your team once per quarter to get updates about the business, then provide you with a written update to send to shareholders for your review.

This service cost $1,000/year, charged $250 per quarter.

Investor Relations

How much does FrontFundr's closing services cost?

FrontFundr is able to support with several closing services as the campaign comes to end, including:

Share certificates: $500 (for share-based offerings only)
Director's resolution: $500 (authorizes the issuance of securities)
Report of Exempt Distribution - full service: $2,000 (generally, must be filed with regulators upon each closing)*
Report of Exempt Distribution - partial service: $500 (schedule 1 of the Report only if you will be filing the Report directly)
International processing: $75/investor (on a case-by-case basis only)

*Cost does not include provincial filing fees charged to FrontFundr on behalf of the Issuer by applicable security regulatory authorities.

Investor Relations

What is the process for refunding investors if I cancel my raise?

If you chose to cancel your raise by not closing on funds, your initial onboarding fee will not be refunded and you are also subject to a $5,000 cancellation fee.

If investors must be refunded, you may be subject to additional fees such as covering their credit card fees that are charged to the investors at the time of their payment. Depending on the campaign, this could be anywhere from $500 - $2,000 on average.

To initiate the refund, FrontFundr will send an email to all the impacted investors. You are welcome to contribute some messaging to the email to provide further context on the decision to not close on funds. Investors will then be asked to complete a refund form to collect their banking information, if they did not pay with Credit. Investors should receive the refund within 7-14 business days, depending on the method used for payment.

Investor Relations

Will I continue to have access to the FrontFundr platform after my campaign?

Yes, you will continue to have access to the FrontFundr platform indefinitely. We recommend continuing to use the portal as a way to keep investors up to date about your business.

You can send quarterly shareholder updates through the updates function. You can email all shareholders who invested through the campaign and you can even add shareholders closed before the FrontFundr round to the distribution list to use our platform as your main distributor.

If you plan on using an external email marketing platform, like MailChimp, to send your quarterly shareholder updates, we recommend still posting those updates through the FrontFundr portal. This will allow the updates to appear as a new notification for shareholders when they login to their FrontFundr account. When sending the update, select Platform Update and Shareholder Update so that the update is portal internally to the investors' dashboards and not externally to the old campaign page.

If you do not want to share updates through the FrontFundr portal, please cc updates@frontfundr.com in all your shareholder communications so we can add them to the portal on your behalf and respond to any investor questions if we receive any.

If you have any questions, please reach out to your FrontFundr Campaign team contact.

FrontFundr Platform

How do I know if I will need to file a Report of Exempt Distribution after my campaign?

If you choose to use the Offering Memorandum Exemption, the Crowdfunding Exemption, or have more than 50 shareholders after a successful raise, you will need to file a Report of Exempt Distribution. This report will need to be filed with each province you accept new shareholders from.

Following the raise if any of the above are applicable, with each investment closed going forward, a filing to the applicable regulators will be required.

Investor Relations

What is required for the close of a campaign?

If your campaign has a minimum amount required before closing, there will need to be at least that amount to close on before proceeding (i.e. investors that have signed and provided payment). If this is hit before your closing date, you may still conduct the closing, but may need to update the Offering Document if you are closing on Crowdfunding investors.

We remove the complexity of processing your investors and closing your campaign, including preparing all of the legal closing documents for your campaign. These documents include Directors Resolution, Share Certificates, providing a draft of an updated CSR, and the filing of the Report of Exempt Distribution. This saves you a significant amount of time and money.

We provide an automated bulk signing process, to ease the burden on you for signing what could be hundred of investor's documents. We also automatically provide those finalized documents to investors, along with a trade confirmation.

For campaigns that do not have more than $25,000 in investments available to close, the decision to close will be at the discretion of the FrontFundr team. We may reach out to request financials to ensure the funds can be used to grow the business.

Investor Relations

How soon do we receive funds after the campaign ends?

Once the closing documents have been signed and the new shareholders have been added to your Corporate Securities Register, FrontFundr will transfer the funds. You should receive the funds within 7-14 days of the campaign close date.

All investors and the businesses authorized signatories will sign their investment documents electronically, making the close a smooth and seamless process.

Investor Relations

How do I host an Annual General Meeting (AGM)?

Just as is in the title, an Annual General Meeting or AGM (and as stipulated by corporate law for your jurisdiction of incorporation), should be hosted once a year. We recommend a hybrid event to invite those local to your office to attend in person and to invite all remaining shareholders, who may be spread out across the country, to join you virtually. Inviting investors to join you in person is a great way to maintain strong relationships and hear feedback or ideas in person. That being said, hosting an AGM entirely virtually is fine as well.

The AGM should cover formal business or voting items. If investors from your FrontFundr investors through a VTA, their voting rights are assigned to the Voting Trustee indicated in the Agreement. The formal business items typically include:

Notice of Annual General Meeting (AGM)
Minutes from the Previous AGM
Audited Financial Statements (if applicable)
Election of Board of Directors
Appointment of auditor

We also recommend using the AGM as an opportunity to update investors on past performance and future plans. This could include a review of the previous year, the outlook for the upcoming year, as well as any growth or funding plans. You should conclude the AGM by giving investors an opportunity to ask questions.

Investor Relations

How should I keep in touch with my investors after the campaign?

You should be sending quarterly updates to investors or shareholders at a minimum. Some companies prefer to send monthly updates which can be a great engagement tool with investors. Shareholder updates should include information that investors want to know such as financial performance, key performance indicators, an overview of operations, any new contracts, and more. This is also an opportunity to ask investors how they can support you. Maybe you're running a new social media initiative you’d like them to share or maybe you are hiring for a new role and they could know a good candidate.

FrontFundr will be following up with companies on a quarterly basis to ensure updates are being sent to shareholders. We encourage companies to add updates@frontfundr.com to their shareholder mailing lists so that we receive a copy of each update sent in the event that investors come to us with questions. We can also add these updates to the FrontFundr platform so investors will be able to see the updates in their dashboard.

You will also continue to have access to the FrontFundr platform after your campaign. You can use this tool to email investor updates and to post shareholder updates to their dashboard. If you have external shareholders that you would like to include in the distribution of these shareholder updates you can add them under the external contacts area of the issuer platform.

In addition to quarterly shareholder updates, you should also be hosting an Annual General Meeting that all shareholders are invited to attend. Investors through FrontFundr who were under a VTA will not have direct voting rights at the event but it’s important to extend the invite so they can stay up to date with their investment and ask any questions they may have for the management team. We typically host FrontFundr’s AGM as a hybrid event with an invite extended to those who are local to our office and a virtual invite for shareholders across the country.

Investor Relations

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Investor Relations

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Due Diligence

Campaign Marketing

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Post Raise

Can FrontFundr help me keep investors updated even after the campaign has closed?

How much does FrontFundr's closing services cost?

What is the process for refunding investors if I cancel my raise?

Will I continue to have access to the FrontFundr platform after my campaign?

How do I know if I will need to file a Report of Exempt Distribution after my campaign?

What is required for the close of a campaign?

How soon do we receive funds after the campaign ends?

How do I host an Annual General Meeting (AGM)?

How should I keep in touch with my investors after the campaign?

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