Document background
The Confidential Investment Memorandum is a crucial document in Canadian investment transactions, typically used when a company or investment vehicle seeks to raise capital through private placement. This document provides potential investors with detailed information about the investment opportunity while maintaining confidentiality and complying with Canadian securities regulations. It is commonly used in situations where the issuer relies on prospectus exemptions under National Instrument 45-106 and must include specific disclaimers and risk factors required by Canadian law. The memorandum typically contains comprehensive business information, financial data, risk factors, and investment terms, serving as a primary due diligence document for sophisticated investors, institutions, and high-net-worth individuals.
