NEW DAWN INNOVATION FUND
In 2013, New Dawn announced a new and innovative CEDIF company that would provide investors with the opportunity to support local, innovative, growth-oriented companies. The New Dawn Innovation Fund enables investors the opportunity to grow their money through the CEDIF structure while also growing the community in which they live and work.
Along with New Dawn Holdings and New Dawn Community Investment Limited, the New Dawn Innovation Fund forms part of the New Dawn CEDIF family of companies and is overseen by a volunteer board of directors.
The New Dawn CEDIF family of companies have been participating in the CEDIF program since 2003/2004. These companies have overseen the offering of nine CEDIFs amounting to $8.2 million in locally invested capital.
Diverse, healthy, resilient and self-reliant Cape Breton businesses and economies enabled and enhanced by access to locally-generated and locally-managed capital.
- 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.
The New Dawn Innovation Fund will invest monies raised in 2014 in Protocase Inc. Founded in 2001 by Steve Lilley and Doug Milburn Protocase drafts and manufactures custom electronic enclosures for designers and engineers. With a staff of 60 and a turn-around time of two to three days, Protocase has established a growing customer base of 4,000 companies and individuals, including IBM, Hewlett-Packard, Stanford University, Apple, Boeing, GE, Intel, Microsoft and Motorola.
Potential investment recipients must be active for-profit businesses based in Cape Breton and listed with the Nova Scotia Registry of Joint Stock Companies.
All potential New Dawn Innovation Fund investments are reviewed and approved by the Innovation Fund board.
Prospective investees must meet all lending criteria, including the provision of three years of financial statements and Canada Revenue Agency Tax Returns.
Following approval of a five-year investment, New Dawn CEDIF businesses must submit annual financial statements for board assessment and pay interest monthly.
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 New Dawn Innovation Fund’s 2013 Community Economic Development Investment Fund (CEDIF), a Provincial Equity Tax Credit program, your investment dollars stay in Cape Breton where they can be put to work in your community.
By effectively pooling your money with your neighbours, and 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. In short, it allows 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 2012 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 $50,000 per year, per shareholder.
The investment is for a 5 year period and may be rolled over after 5 years for an additional 20% equity tax credit, if the CEDIF meets certain conditions. A further 10% equity tax credit is available to CEDIF investors if they hold the investment for more than 10 years, again, if the CEDIF meets certain other conditions. This means a total possible 65% tax credit or $650 on the original investment of $1000.
Existing RRSPs with other financial institutions can be transferred, without penalty into self-directed RRSPs within a CEDIF. In transferring existing RRSPs into self-directed CEDIF RRSPs, you qualify for the 35% non-refundable tax credit on the full transfer amount.
Who is Eligible to Invest?
Any Nova Scotia resident over the age of nineteen is eligible to invest in a CEDIF anywhere in the province.
How to Invest
The New Dawn Innovation Fund is now open and accepting investments. The New Dawn Innovation Fund will accept investments until March 3, 2014. For more information or to invest, contact Leonard Murray at firstname.lastname@example.org or 902-539-9560 ext. 240.
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 240). 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