Document background
The Private Placement Agreement is essential for Canadian companies seeking to raise capital through exempt market distributions. This document is used when companies wish to issue securities without the need for a prospectus, typically to accredited investors or other exempt purchasers as defined under Canadian securities legislation. The agreement must comply with various provincial securities laws and national instruments, particularly NI 45-106, which provides the regulatory framework for prospectus exemptions. Common scenarios for using this agreement include growth capital raises, pre-IPO rounds, and strategic investments. The document contains crucial elements such as subscription details, investor qualifications, securities transfer restrictions, and regulatory compliance requirements specific to the Canadian market.
