2014: New Dawn Innovation Fund

Innovation Fund Logo REVERSED[2] (2)

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.

Vision

Diverse, healthy, resilient and self-reliant Cape Breton businesses and economies enabled and enhanced by access to locally-generated and locally-managed capital.

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.

2014 Investment

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.

Investment Process

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 [1]
  • 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 Peter Cameron at peter@​newdawn.​ca or 902-539-9560 ext. 236

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 (Peter Cameron, New Dawn Innovation Fund Limited, PO Box 1055, Sydney, Nova Scotia, Phone (902) 539-9560 Ext 236). 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.

 


[1] Past performance does not indicate future results