Modified OM Private Placement Exemption Announced To Facilitate Early Stage Financing

On December 20, 2012, the Canadian Securities Administrators, excluding Ontario and British Columbia, announced that they would be publishing harmonized interim local orders to provide exemptions from certain disclosure requirements relating to the use of the "OM exemption" under NI 45-106 and the use of Form 45-106F2 Offering memorandum for non-qualifying issuers. This new "OM-form exemption" is intended to facilitate capital raising for early stage and other small and medium sized businesses. The harmonized interim local orders will not apply in Ontario or B.C. The OM exemption was never available in Ontario and neither the OSC nor the BCSC are party to the multilateral staff notice. Local orders have now been issued in most of the participating jurisdictions.