Finhaven Private Markets, the first private securities marketplace to operate in multiple provincial jurisdictions in Canada, today announced that the marketplace is open with its first issuer and is onboarding accredited investors.
Finhaven Private Markets is operated by Finhaven Capital Inc., a registered exempt market dealer in Canada.
Finhaven Private Markets operates similar to a stock exchange but deals only with private securities, connecting issuers to accredited investors using safe, secure Distributed Ledger Technology (blockchain) and digital securities. Finhaven Private Markets issuers will be private commercialized companies looking to raise at least $2 million in capital to fund their next stage of growth, including targeted projects. The company is targeting issuers in various industries including technologies, food, real estate and climate change.
“Today, accredited investors in Canada took a major step forward in gaining access to private opportunities that have been made unavailable to them until now,” says Finhaven CEO DH Kim. “With more companies staying private, or staying private longer, Finhaven Private Markets is connecting private issuers to new sources of capital while giving accredited investors the ability to buy and sell private securities on a regulated platform.”
Accredited investors and permitted clients who meet assets and/or income thresholds in securities legislation can invest in digital securities offered by non-reporting issuers (whose securities do not trade publicly), hold them in a digital wallet, and, importantly, trade those digital securities among themselves by way of privately negotiated trades.
SolarPark, a high efficiency solar panel manufacturer with a diversified portfolio of clients in the US and South Korea for residential and commercial markets, is the first issuer with Finhaven Private Markets. Founded in 2007 and boasting 181 employees, SolarPark is raising $13 million through an 8% Convertible Bond with a three year maturity to deliver a $43 million secured contract with a $6 billion solar power project in South Korea by August 2021.
A critical advantage for Finhaven Private Markets over potential entrants in the space is its regulatory clearance across multiple provincial jurisdictions. Securities regulators, in consultation with the Canadian Securities Administrators’ Regulatory Sandbox Committee, have granted Finhaven Private Markets relief in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Québec from securities law requirements for marketplaces and clearing agencies.
“We have been working with securities regulators across Canada for more than two years to ensure their concerns and interests are central to and reflected in our marketplace design. Investors can be sure we are well regulated and secure,” says Kim.
Next steps in the phased approach to developing Finhaven Private Markets include:
- Selecting 30 issuers for the marketplace by Q4 2022 using a rigorous due diligence process
- Building an active community of 300 accredited investors by Q2 2021 (10,000 investors authorized by regulators by end of 2022)
- Commencing secondary trading in the marketplace once the first companies have met their capital raise targets (Q2 2021)
Ryan Lee, CEO and Managing Partner of Dunamu & Partners, a leading VC firm in the blockchain and fintech space says, “we believe in digital securities and the role blockchain will play in the evolution of capital markets. Today’s launch proves that Finhaven is leading the evolution, and we look forward to the continued growth of Finhaven Private Markets.” Dunamu & Partners invested in Finhaven in 2018.
Finhaven Capital Inc. is a wholly owned subsidiary of Finhaven Technology Inc. ("Finhaven"), a Vancouver-based financial services and technology company with a capital markets platform built on Distributed Ledger Technology and digital securities.