Island cider house turns to provincial program to attract new investors

A Prince Edward Island cider house that launched just before the first COVID-19 lockdown is hoping a provincial government program will help it attract new investors because it didn’t have enough income to qualify for federal or provincial assistance during the pandemic.

Red Island Cider is licensed by the province to sell shares at $10,000 each under a program called Community Economic Development Enterprise, or CEDB.

Owner Robert Van Waarden hopes the government program will help move them forward.

“The goal of our CEDB offering is to really come out strong from the pandemic,” he said.

The program, launched in 2011, encourages Islanders to invest in local businesses by making investments eligible for a 35% provincial tax credit.

Shareholders will also have a say in the management of the company, Van Waarden said.

In addition to the tax credit, Island investors may have the added benefit of holding their shares in an RRSP, which makes them eligible for other tax breaks.

But this advantage is not without risk.

If Red Island Cider went bankrupt within the five-year period, people would lose their $10,000 investment.

The company has until Feb. 24 to reach its goal of 25 investors, Van Waarden said.

Red Island Cider is one of the few companies to register as a CEDB, but there have been some successes.

Bogside Brewery in Montague has raised nearly $700,000 with three different CEDB offers, according to owner David McGuire.

An island feature film, always water, was also partially funded by the program. The filmmaker behind the film, Susan Rodgers, said the company raised nearly $400,000.