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Annual Meeting- September 14, 2006

Annual Meeting- September 14, 2006. Types of CEDIF’s. A CEDIF is a company or co-operative set up to raise capital (bring investors together) to invest in a business or businesses Must have at least six directors from the community A CEDIF operates under one of the following scenarios:

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Annual Meeting- September 14, 2006

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  1. Annual Meeting- September 14, 2006

  2. Types of CEDIF’s • A CEDIF is a company or co-operative set up to raise capital (bring investors together) to invest in a business or businesses Must have at least six directors from the community • A CEDIF operates under one of the following scenarios: • Direct investment/ operation a local business (Just Us Coffee; Valley Funeral Home) • Flow-through investment into one or more businesses (Unique Solutions; Media Fund Atlantic) • “Blind pool” whereby investors do not know where their investment dollars will go at time of investing in the CEDIF (BCA; NCII; Baie Chedabucto)

  3. Investment Incentives to Investors Nova Scotia tax credit based on the amount invested in CEDIF. Does not reduce ACB of investment. Initial investment (Year 0) = 30%; Rollovers (Year 5)= 20%; (Year 10)= 10% Credit may be carried back (3 yrs.)/ forward (7 yrs.) Maximum annual tax credit now $15,000 ($50,000 investment); was $9,000/ $30,000 **** 20% Provincial guarantee (outside HRM) Investments made after June 30, 2006 do not qualify for the 20% guarantee. Additional details will be provided- Kevin.

  4. Steps to Forming a CEDIF • Prepare initial documentation • Review by OED - suitable to offer as a CEDIF • Offering Document with necessary attachments: • outlines what the investor is buying • details who is making the shares available • value of the offering and how funds will be invested • Full & plain disclosure • Raise capital, close offering make investment

  5. Capital Raised • 32 Funds • ~$20 million raised • ~ 3,000 Investors

  6. March 2006 Closings (2005 tax year) FundCapital Raised Bay Wind Field 268,592 (4th close) BBI Fund Ltd. 56,500 (3rd close) CB Waterside Developments Ltd. 1,092,000 (2005?) Chebucto Wind Field 133,994 Glooscap Wind Field 146,000 Just Us! Fair Trade Investment Co-op 332,000 (4th close) Northumberland Wind Field 134,994 Media Fund (Atlantic) Ltd. 957,195 Northeastern (NCII) 219,500 (5th close) Shean Investment Co-op 570,000 Sou'Wester Wind Field 221,218 Sydport Investment Co-op 226,000 Unique CEDC Ltd. 1,988,629 (largest offer) Total 6,346,622

  7. Truro Investment Co-operative Ltd. • Raised approx. $1 million from 150 investors, and invested in the Marigold Cultural Centre in Truro. • Grand Opening Today!

  8. Media Fund Atlantic Ltd. • Raised approx. $1 million from 50 investors in order to invest in the film & television development, production, and distribution industry.

  9. Scotian WindFields Map8 CEDIF’s working together

  10. Closing Comments • CEDIF’s are unique to Nova Scotia; working with CAP, ACOA and other Atlantic Provinces • Getting through the process is not quick or easy…nor should it be. • Identified financing gap at $100,000 to $1,000,000; capital needs outside this range may be better served by other tools

  11. More information Chris Payne NS Office of Economic Development (tel) 902-424-1259 (cell) 902-430-6469 Email: paynecj@gov.ns.ca Website: www.gov.ns.ca/econ/cedif

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