Document background
The Confidential Private Placement Memorandum (PPM) is a crucial document in Canadian private capital markets, used when companies seek to raise capital through private placement of securities without a public offering. It is typically employed when targeting accredited investors or other exempt purchasers under Canadian securities laws. The document must comply with federal and provincial securities regulations, particularly National Instrument 45-106, while maintaining confidentiality of sensitive business information. The PPM includes comprehensive details about the business, financial projections, risk factors, and investment terms, serving as both a marketing document and a legal disclosure tool to protect the issuer from potential liability. It is essential for private companies, investment funds, and other entities seeking to raise capital while avoiding the more stringent requirements of a public offering.
