Document background
The Private Placement Contract is essential for Canadian companies seeking to raise capital through private securities offerings without going through a public offering process. This document type is specifically designed to comply with Canadian securities regulations, particularly National Instrument 45-106, which provides exemptions from prospectus requirements. It's typically used when companies want to sell securities to accredited investors, family/friends/business associates, or other exempt purchasers as defined by Canadian securities law. The contract includes crucial elements such as investor qualification criteria, subscription details, regulatory compliance provisions, and risk disclosures. It's particularly important for maintaining compliance with both federal and provincial securities regulations while providing a structured framework for private investment transactions.
