Accredited Investor Exemption Still First In Popularity

Foreign and Canadian issuers primarily rely on the accredited investor exemption when raising capital on a prospectus exempt basis, as reported in the recently published OSC Staff Notice 45-715 2017 Ontario Exempt Market Report. The Report, which summarizes capital raising activity by non-investment fund issuers in Ontario's exempt market during 2015 and 2016, also notes an increase in activity in Ontario's exempt market and the general take-up of prospectus exemptions that were introduced during 2015 and 2016. Notably, Ontario's exempt market accounted for less than one-fifth of the total gross proceeds raised by Canadian issuers domestically and less than one-tenth of gross proceeds raised globally.