Four New Private Placement Exemptions Proposed

As a result of a comprehensive review of the exempt market commenced in 2011, the Ontario Securities Commission (OSC) published for comment four new prospectus exemptions. The proposed exemptions are intended to facilitate capital formation, particularly for start-ups and small and medium-sized enterprises. They would also further harmonize the Ontario private placement exemptions with those of other Canadian provinces. The comment period ends on June 18, 2014.

Proposed Prospectus Exemptions

The proposed prospectus exemptions are:

• an offering memorandum exemption;
• a family, friends and business associates exemption;
• an existing security holder exemption; and
• a crowdfunding exemption.