The New Dawn Innovation Fund is excited to announce the launch of its 2015 campaign.
The New Dawn Innovation Fund provides investors with the opportunity to support local, innovative, growth-oriented companies while earning competitive dividends.
The New Dawn CEDIF family of companies (New Dawn Innovation Fund, New Dawn Community Investment and New Dawn Holdings) have been participating in the CEDIF program since 2004.
Over ten years, New Dawn CEDIFS have raised $9.4 million for direct investment in Cape Breton. The funds have been invested in companies like Protocase, Advanced Glazings, 45 Drives, Halifax Biomedical, Media Spark, Marcato Digital and Nova Stream.
What is a CEDIF?
Each year Nova Scotians invest more than $600 million in RRSPs. Less than 2% of this is reinvested in Nova Scotia. With the New Dawn Innovation Fund, your investment dollars stay in Cape Breton where they can be put to work in your community and you earn a 35% non-refundable provincial income tax credit, in addition to annual dividends.
By investing in a locally-owned business with a strong and consistent growth trajectory, your investment enables a cutting edge export-oriented business to access the capital it needs to expand its facilities and operations and to continue to meet the growing demand for its products.
The New Dawn Innovation Fund allows both investors and businesses to further the vision of creating a self-reliant people in a vibrant community.
Benefits of Investing
- RRSP eligible
- No Annual Management Fee
- 3% Annual Dividends (*)
- 35% Provincial Non-Refundable Income Tax Credit
- 100% of your money in invested in Cape Breton
How it Works
A $1000 investment would qualify for a non-refundable provincial income tax credit of $350 on your 2014 tax return.
Alternatively, an investor may carry this non-refundable income tax credit forward for 7 years or back for 3 years.
The minimum investment is $1000 and the maximum investment is $15,000 per year, per shareholder.
The investment is for a 5 year period. Your investment may be rolled over after 5 years for an additional 20% equity tax credit (if the CEDIF meets certain conditions). Your investment may be rolled over once more at the 10 year mark (if the CEDIF meets certain conditions) for another 10% equity tax credit. That’s a 65% equity tax credit (or $650 on your original $1000 investment) over 15 years on all investments.
Existing RRSPs with other financial institutions can be transferred, without penalty into CEDIF self-directed RRSPs. In transferring existing RRSPs into self-directed CEDIF RRSPs, you qualify for the 35% non-refundable tax credit on the full transfer amount.
Selecting New Dawn Investments
All potential New Dawn Innovation Fund investments are reviewed and approved by the Investment Committee of the New Dawn Innovation Fund board.
Potential investment recipients must be active for-profit businesses based in Cape Breton and listed with the Nova Scotia Registry of Joint Stock Companies.
Prospective investees must meet all lending criteria, including the provision of three years of financial statements and Canada Revenue Agency Tax Returns. They must be commercially viable, have a sound business plan reflecting local market conditions, good management, and potential for growth and profitability.
Following approval of a five-year investment, New Dawn CEDIF businesses must submit annual financial statements for board assessment and pay interest monthly.
All investees must allow the New Dawn Innovation Fund to appoint, with full Board rights and responsibilities, a representative of the Innovation Fund to their Board of Directors.
How to Invest
The New Dawn Innovation Fund is now open and accepting investments. The New Dawn Innovation Fund will accept investments until March 2, 2014. For more information or to invest, contact Leonard Murray at email@example.com or 902-539-9560 Ext. 0.
New Dawn Innovation Fund Vision
Diverse, healthy, resilient and self-reliant Cape Breton businesses and economies enabled and enhanced by access to locally-generated and locally-managed capital.
New Dawn Innovation Fund Objectives
- Provide access to local investment capital for businesses and entrepreneurs in Cape Breton.
- Provide local investors with opportunities to earn competitive dividends while investing in their community.
- Generate, over time, a significant bank of locally managed Cape Breton capital that enables the significant growth of local businesses and economies.
THIS CEDIF OFFERING MAY BE A HIGH RISK INVESTMENT. THIS OFFERING IS MADE THROUGH AN OFFERING DOCUMENT, WHICH CAN BE OBTAINED FROM AN AUTHORIZED SALES AGENT (Leonard Murray, New Dawn Innovation Fund Limited, PO Box 1055, Sydney, Nova Scotia, Phone (902) 539-9560 Ext. 0). THIS OFFERING CONSTITUTES AN EXEMPT OFFERING OF THESE SECURITIES ONLY IN NOVA SCOTIA BY AUTHORIZED SALES AGENTS. INVESTORS SHOULD READ THE OFFERING DOCUMENT BEFORE MAKING AN INVESTMENT DECISION.
(*) Past performance does not indicate future results