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What Is the Investment Canada Act (ICA)?



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The Investment Canada Act (ICA) refers to a Canadian law that regulates direct investment in the country by foreigners. The Act covers foreign ownership of new and existing businesses within the country. Under the law, any non-Canadians who wish to make a direct investment in the country must submit a notice or application for review. The law was passed in 1985 and has been updated several times since then. The Act was intended to signal Canada’s openness to new foreign direct investment (FDI).

Understanding the Investment Canada Act (ICA)

The Investment Canada Act was established in 1985 and replaced the Foreign Investment Review Act. The new law was signed by the federal Progressive Conservative government led by then-Prime Minister Brian Mulroney.1

The ICA allows the government to review significant investments made by foreign parties within the country. It also recognizes that these investments benefit the country and its national security.2 This ensures that foreign investment not only advances Canada’s economic growth but also encourages the expansion of the national job market.

As mentioned above, foreign parties interested must file a notice or application before they intend to make direct investments in Canada. Notices are filed every time someone wishes to start a new venture or whenever someone acquires a business in Canada. An application for review must be submitted whenever the value of an acquired business either meets or exceeds the thresholds set out by the Act.3

The Act’s Limits on Foreign Direct Investment

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The Act put thresholds in place to keep Canadian interests front and center of the investment industry. As such, the Act specifies the following limits for FDI for review for 2021:

  • Investments through private sector trade agreements: $1.565 billion in enterprise value
  • World Trade Organization (WTO) investments by state-owned enterprises: $415 million in asset value
  • Investments in cultural businesses and non-WTO investments: $5 million in asset value (direct investments) and $50 million (indirect transactions)34

Investment values are calculated by either asset value or enterprise value. The former represents the value of assets according to a company’s financial statements while the latter accounts for a corporation’s cash, debt, and market value.5 Investments may be rejected if they do not meet threshold requirements or do not benefit the Canadian public.

Innovation, Science, and Economic Development Canada is the federal agency responsible for administering the Investment Canada Act.6

Special Considerations

The government of Canada reported 962 notifications and applications filed by non-Canadians that were approved in the 2018-2019 fiscal year. The total asset value for these investments totaled $41.24 billion while enterprise value investments reached $84.73 billion. Under the ICA, 45% of investments were measured by asset value while the remaining 55% fell into the enterprise value category.5 This dropped from the 2019-20 fiscal year, which recorded 21 notifications submitted to the Department of Canadian Heritage.7

Criticism of the Investment Canada Act (ICA)

Like any legislation that is meant to encourage foreign investment, the ICA is not without its fair share of criticism. Although many countries actively seek investment from external parties to support economic development, these investments may result in destabilizing economic or political environments. For example, certain vital strategic elements such as national security can be undermined by greater access to foreign investment vehicles.

Another common drawback to increased FDI is the idea of hot money. Hot money includes the destabilizing effects of a flood of money into and out of a country. As money rushes in, many projects become wasteful and frivolous. That’s because their primary purpose isn’t long-term or economic in nature. When money rushes out, it leaves fragile economies prone to greater instability or crises.

Furthermore, even though the Act isn’t used to formally block takeover bids and investment in Canadian entities, its vague mandate does enable diplomats, public representatives, and civil servants to informally dissuade investors at times. This creates a sense of government risk among foreign investment analysts, but the scale of impact is difficult to measure and ascertain.


RBC Dominion Securities fined $350K for supervisory failings – Investment Executive



The friend — referred to as SC — acted as SK’s accountant and had trading authority over SK’s accounts. According to IIROC, Benson placed undue reliance on communications with SC as SK’s trading authority, rather than ensuring the account parameters were appropriate for SK.

SC went on to open margin accounts at RBC DS for himself and his spouse. The margin accounts were guaranteed by SKL, a business owned by SK that had a corporate account with RBC DS.

As with SK’s accounts, SC was the sole trading authority for SKL. SC signed the guarantees for his and his spouse’s margin accounts on behalf of SKL — representing a conflict of interest that Benson failed to address, IIROC noted.

“Benson did not take adequate steps to ensure that SK understood the nature, significance, and financial implications of the guarantees, and RBC DS failed to sufficiently supervise Benson in regard to confirming the extent of her direct communication with SK,” the settlement agreement read.

The use of margin in SC’s and his spouse’s accounts was several times their stated net worth, according to IIROC. SC’s most heavily traded account was almost always in a negative equity position, and his spouse’s account was always in a negative equity position.

When RBC DS inquired about the spouse’s account, Benson adjusted the spouse’s investment knowledge upward on a KYC form without undertaking the due diligence to support such a change, according to IIROC.

Following SK’s death in October 2014, SC began transferring money from SKL to his and his spouse’s margin accounts, beginning in December 2014. RBC DS approved three transfers totalling more than $3 million following discussions with Benson. The transfers amounted to “a substantial part of the assets of SKL,” according to the agreement.

Although Benson became aware of SK’s death shortly after it happened, she didn’t inform RBC DS of her client’s death until January 2015. When the transfers were approved, RBC DS had not been provided a copy of SK’s will or received instructions from SK’s estate trustees.

RBC DS did arrange a meeting with SK’s estate trustees and alerted them to the transfers from the SKL account. RBC DS also made a voluntary payment of $500,000 to SKL. IIROC considered both of these actions to be mitigating factors.

Nonetheless, IIROC said RBC DS “placed undue reliance on Benson’s representations regarding her knowledge and discussions with the clients at issue, when heightened supervision or direct contact with clients was required.”

In addition to a $350,000 fine, RBC DS agreed to pay $50,000 in costs.

In a separate settlement hearing, Benson agreed to a $30,000 fine and a five-year suspension from IIROC. She also agreed to pay $10,000 in costs. Benson retired from RBC DS in March 2016 and is no longer a registered representative.

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RBC GAM names new global infrastructure head – Investment Executive



First-ever G-Corp lists on NEO Exchange

Canaccord Genuity G Ventures Corp. will focus on acquisitions in the mid-cap space

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Richardson Wealth adds to tax and estate planning team

The firm announced three new hires in its Western offices

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Yellen outlines to Congress emergency measures on debt limit

The measures would seek to avoid an unprecedented default on U.S. national debt

TD issuing $1.75B in LRCNs

The notes will bear interest of 3.6% annually for the first five years

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Euro Manganese Announces the Second Tranche of EIT InnoEnergy's Investment – Financial Post




  • The Company has received a second tranche of investment from EIT InnoEnergy of €125,000, bringing the EU-backed body’s investment to date to €187,500.
  • The aggregate investment from EIT InnoEnergy is intended to be €250,000 and will help accelerate the Chvaletice Manganese Project’s successful integration into Europe’s electric vehicle (EV) battery value chain.

VANCOUVER, British Columbia, July 27, 2021 (GLOBE NEWSWIRE) — Euro Manganese Inc. (TSX-V and ASX: EMN; OTCQX: EUMNF) (the “Company” or “EMN“) is pleased to announce the receipt of a second investment tranche from EIT InnoEnergy amounting to €125,000 (CAD$185,162).

Pursuant to the terms of a Project Support Agreement entered into by the Company and EIT InnoEnergy (the “Agreement“), announced on February 22, 2021, the Company is to receive a three-tranche investment having an aggregate value of €250,000. The funds are being used to support ongoing work on the Chvaletice Manganese Project’s (the “Project”) definitive feasibility study and on the Chvaletice demonstration plant, which is intended to produce large-scale samples of high-purity manganese for supply chain qualification by prospective customers, including European electric vehicle makers and battery manufacturers.

EIT InnoEnergy is a Knowledge and Innovation Community supported by the European Institute of Innovation and Technology. It leads the industrial stream of the European Battery Alliance, an initiative launched by The European Commission in October 2017 with the objective to build a strong and competitive battery industry in Europe. The support of EIT InnoEnergy, which also includes assistance in securing financing and offtake agreements, is intended to help accelerate the Project’s successful integration into Europe’s electric vehicle (EV) battery value chain.

The first EIT InnoEnergy investment tranche of €62,500 (CAD$92,850) was advanced to the Company on March 24, 2021, for which the Company will issue 147,380 common shares (“Shares“) at the price of CAD$0.63 per Share (refer to EMN news release dated March 30, 2021). The second investment tranche of €125,000 (CAD$185,162) was advanced to the Company on July 26, 2021. Accordingly, the Company will issue an additional 330,647 Shares to EIT InnoEnergy at the price of CAD$0.56 per Share being the 10-day volume weighted average stock price on the TSX Venture Exchange (“TSXV“) prior to receipt of the second investment tranche. This brings EIT InnoEnergy’s total investment to date to €187,500 (CAD$278,012). The issuance of the 478,027 Shares is not expected to occur until early January 2022 and remains subject to the approval of the TSXV. In accordance with Canadian securities laws and policies of the TSXV, Shares issued to EIT pursuant to the Agreement will be subject to a four month and one day statutory hold from their date of issuance.

For more information about EIT InnoEnergy’s support of the Chvaletice Manganese Project, see EMN’s news release dated February 22, 2021.

About Euro Manganese Inc.

Euro Manganese Inc. is a battery materials company whose principal focus is advancing the development of the Chvaletice Manganese Project, in which it holds a 100% interest. The proposed Project entails re-processing a significant manganese deposit hosted in mine tailings from a decommissioned mine, strategically located in the Czech Republic. The Company’s goal is to become a leading, competitive and environmentally superior primary producer of ultra-high-purity Manganese Products in the heart of Europe, serving the lithium-ion battery industry, as well as other high-technology applications.

Authorized for release by the CEO of Euro Manganese Inc.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), or the ASX accepts responsibility for the adequacy or accuracy of this release.

Marco A. Romero Fausto Taddei
President & CEO Vice President, Corporate Development
+1 (604)-681-1010 ext. 101 & Corporate Secretary +1 (604)-681-1010 ext. 105
Media Inquiries:
Ron Shewchuk
Director of Communications
+1 604-781-2199
Company address:
#709 -700 West Pender St.
Vancouver, British Columbia, Canada, V6C 1G8

Forward Looking Statements

Certain statements in this news release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company or the Project to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.

Such forward-looking information or statements relate to future events or future performance about the Company and its business and operations, which include, among other things, the use of proceeds of the funds advanced by EIT, receipt of additional funding from EIT, TSXV approval for the issuance of Shares to EIT, the completion and timing of the definitive feasibility study, the timing of the delivery and operation of the demonstration plant, and other statements with respect to the continued development of the Chvaletice Manganese Project.

Readers are cautioned not to place undue reliance on forward-looking information or statements. Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to, the factors discussed under “Risks Notice” and elsewhere in the Company’s MD&A for the year ended September 30, 2020 and its most recent Annual Information Form.

The forward-looking statements contained in this news release are made as of the date hereof and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.

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