Annual Meeting September 14, 2006

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Annual Meeting- September 14, 2006
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Types of CEDIFs

• A CEDIF is a company or co-operative set up to
  raise capital (bring investors together) to
  invest in a business or businesses Must have at
  least six directors from the community
• A CEDIF operates under one of the following
  scenarios
• Direct investment/ operation a local business
  (Just Us Coffee Valley Funeral Home)
• Flow-through investment into one or more
  businesses (Unique Solutions Media Fund
  Atlantic)
• Blind pool whereby investors do not know where
  their investment dollars will go at time of
  investing in the CEDIF (BCA NCII Baie
  Chedabucto)

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Investment Incentives to Investors
Nova Scotia tax credit based on the amount
invested in CEDIF. Does not reduce ACB of
investment. Initial investment (Year 0) 30
Rollovers (Year 5) 20 (Year 10) 10 Credit
may be carried back (3 yrs.)/ forward (7
yrs.) Maximum annual tax credit now 15,000
(50,000 investment) was 9,000/ 30,000
20 Provincial guarantee (outside HRM)
Investments made after June 30, 2006 do not
qualify for the 20 guarantee. Additional details
will be provided- Kevin.
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Steps to Forming a CEDIF

• Prepare initial documentation
• Review by OED - suitable to offer as a CEDIF
• Offering Document with necessary attachments
• outlines what the investor is buying
• details who is making the shares available
• value of the offering and how funds will be
  invested
• Full plain disclosure
• Raise capital, close offering make investment

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Capital Raised

• 32 Funds
• 20 million raised
• 3,000 Investors

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March 2006 Closings (2005 tax year)

• Fund Capital Raised
• Bay Wind Field 268,592 (4th close)
• BBI Fund Ltd. 56,500 (3rd close)
• CB Waterside Developments Ltd. 1,092,000 (2005?)
• Chebucto Wind Field 133,994
• Glooscap Wind Field 146,000
• Just Us! Fair Trade Investment Co-op 332,000
  (4th close)
• Northumberland Wind Field 134,994
• Media Fund (Atlantic) Ltd. 957,195
• Northeastern (NCII) 219,500 (5th close)
• Shean Investment Co-op 570,000
• Sou'Wester Wind Field 221,218
• Sydport Investment Co-op 226,000
• Unique CEDC Ltd. 1,988,629 (largest offer)
• Total 6,346,622

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Truro Investment Co-operative Ltd.

• Raised approx. 1 million from 150 investors, and
  invested in the Marigold Cultural Centre in
  Truro.
• Grand Opening Today!

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Media Fund Atlantic Ltd.

• Raised approx. 1 million from 50 investors in
  order to invest in the film television
  development, production, and distribution
  industry.

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Scotian WindFields Map8 CEDIFs working together
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Closing Comments

• CEDIFs are unique to Nova Scotia working with
  CAP, ACOA and other Atlantic Provinces
• Getting through the process is not quick or
  easynor should it be.
• Identified financing gap at 100,000 to
  1,000,000 capital needs outside this range may
  be better served by other tools

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More information
Chris Payne NS Office of Economic
Development (tel) 902-424-1259 (cell) 902-430-646
9 Email paynecj_at_gov.ns.ca Website www.gov.ns.
ca/econ/cedif