What is a prospectus?

A formal document that includes detailed information about the security and the company offering it, and which must be filed and approved by the Securities Regulatory Authority (SRA) when a company (public or private) plans to offer securities for purchase.

What is a prospectus exemption?

A specific set of rules that allow companies to bypass the requirement of filing a prospectus when distributing securities.

How many prospectus exemptions are available?

Out of the 8 main capital raising exemptions available, Equivesto relies on 4:

1. Startup Crowdfunding Exemption (SCF)

2. Offering Memorandum Exemption (OM)

3. Accredited Investor Exemption (AI)

4. Family, Friends, and Close Business Associates Exemption (F&F)

How does the Accredited Investor exemption work?

It allows all companies and investment funds to raise funds from accredited investors only.

How does the Startup Crowdfunding exemption work?

It allows all companies which are incorporated or organized in Canada to raise funds online from the general public through a single funding portal that must be registered with the SRA.

How does the Offering Memorandum work?

It allows all companies to raise funds from the general public based on an Offering Memorandum being made available to investors.