The Exempt Market

The organizations that require funding are not publicly traded but still need investors to achieve the vision for their projects and want to grow without going public. They approach dealers like Rethink & Diversify Securities Inc. to help them develop their offering and attract investors.

In the exempt market, issuers typically use an offering memorandum instead of a prospectus to raise capital.  One of the main differences is that offering memorandums may not have as much disclosure and typically only have annual audited financials, not quarterly audited financial.  Depending on the province you live in there may be certain qualification you need to meet in order to invest into private investments.  Investors must often qualify as eligible investors, which means they must have over $400,000 in total assets, less any liabilities or must make over $75,000 per year.  There may be other qualifications, but any registered dealing representative will be able to confirm whether you qualify or not.