Marginal note:Record of key investors
241 (1) A holder of a licence for cultivation, processing or sale must maintain a record that contains the following information in respect of each key investor:
(a) the key investor’s name and mailing address;
(b) a detailed description of the means by which the key investor exercises, or is in a position to exercise, control over the holder;
(c) details regarding the transaction by virtue of which the key investor became such an investor, including
(i) if they provided money directly or indirectly to the holder, the amount provided, the date on which it was provided and the terms and conditions under which it was provided, and if the money was provided in the form of a loan, the interest rate and term, and
(ii) if they provided goods or services directly or indirectly to the holder, a description of the goods or services, their fair market value at the time they were provided, the date on which they were provided and the terms and conditions under which they were provided;
(d) details regarding each instance in which the key investor provides money, goods or services directly or indirectly to the holder, including
(i) in the case of money, the amount provided, the date on which it is provided and the terms and conditions under which it is provided, and if the money is provided in the form of a loan, the interest rate and term, and
(ii) in the case of goods or services, a description of the goods or services, their fair market value at the time at which they are provided, the date on which they are provided and the terms and conditions under which they are provided;
(e) details regarding any benefit that the key investor receives from the holder as a result of
(i) having provided money, goods or services to the holder, or
(ii) holding an ownership interest or other right or interest in, or in respect of, a business operated by the holder or, if the holder is an organization, in or in respect of the organization;
(f) details regarding each instance in which money is repaid or goods are returned to the key investor, including
(i) in the case of money, the amount repaid and the date on which it is repaid, and
(ii) in the case of goods, a description of the goods, their fair market value at the time they are returned and the date on which they are returned;
(g) if known, an indication of whether any ownership interest or other right or interest held by the key investor in, or in respect of, a business operated by the holder — or, if the holder is an organization, in or in respect of the organization — has been assigned, pledged, mortgaged, hypothecated or sold, in whole or in part, to any person;
(h) if known, an indication of whether an agreement has been entered into under which any right or interest referred to paragraph (g) will or could be assigned, pledged, mortgaged, hypothecated or sold, in whole or in part, to any person; and
(i) if known, the name and mailing address of any person referred to in paragraph (g) or (h).
Marginal note:Exception — published market
(2) Subsection (1) does not apply to a holder that is an organization if their equity securities are, or a class of those securities is, listed on a published market.
Marginal note:Exception — key investors before issuance
(3) The holder is not required to include the information referred to in paragraph (1)(c) in respect of a key investor that became such an investor before the day on which the licence was issued.
Marginal note:Exception — continued licences
(4) If the licence has been continued in force by virtue of subsection 158(1) of the Act, the holder is not required to include the information referred to in paragraph (1)(c) in respect of a key investor that became such an investor before the day on which these Regulations come into force.
Marginal note:Requirements regarding content
(5) The holder must not delete any information from the record and must indicate the effective date of the event in respect of which new information is added to the record.
Marginal note:Former key investors
(6) For greater certainty, the information that has been included in the record in respect of a key investor must continue to be retained in the record even if the person ceases to be such an investor.
Marginal note:Annual reporting
(7) The holder must, no later than January 31 in any given year, provide the Minister with
(a) a copy of the record; and
(b) if any person ceased to be a key investor during the previous calendar year, a document containing details regarding how and when they ceased to be such an investor.
Marginal note:Maintenance and retention of record
(8) The holder must ensure that the record is
(a) maintained in a manner that will enable an audit of it to be made in a timely manner;
(b) available at the site specified in the licence; and
(c) retained for at least two years after the day on which the holder ceases to be required to maintain it.
Marginal note:Definitions
(9) The following definitions apply in this section.
- key investor
key investor means, in respect of the holder of a licence, a person that exercises, or is in a position to exercise, direct or indirect control over the holder by virtue of
(a) having provided money, goods or services directly or indirectly to the holder; or
(b) holding an ownership interest or other right or interest in, or in respect of, a business operated by the holder or, if the holder is an organization, in or in respect of the organization. (investisseur-clé)
- published market
published market means a market inside or outside Canada on which equity securities are traded, if the prices at which the securities are traded are regularly published either electronically or in a newspaper or financial or business publication of general circulation. (marché publié)
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