Enquirica Research - Exempt Market Securities – A Brief Backgrounder

Oct. 11, 2011 - PRLog -- Canadian securities legislation creates two categories of securities that may be sold: (i) prospectus securities; and (ii) securities issued under prospectus exemption. Securities issued under the prospectus exemptions, otherwise known as non-reporting issuers, are typically considered to form the “exempt market”.   Exempt market securities fall under National Instrument 45-106.  To rely on the exemption provided in the instrument, an issuer must:
•   issue an offering memorandum; (exemption not available in Ontario)
•   sell only to accredited investors;
•   sell only to family, friends and business associates;
•   or sell a minimum of $150,000 per transaction.

There are no established markets for exempt market securities and they can be illiquid.

Enquirica Research is a Calgary based firm focussing on the analysis of alternative asset classes and investments, primarily in western Canada. For copies of Enquirica research register at www.enquirica.com.
                                    
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Enquirica Research is a Calgary based firm focussing on the analysis of alternative asset classes and investments, primarily in western Canada. For copies of Enquirica research register at www.enquirica.com.