Document background
The Limited Offering Memorandum is a crucial document in Canadian private capital markets, used when companies seek to raise funds without issuing a full prospectus. It's typically employed for private placements, exempt market offerings, and other non-public securities distributions. The document must comply with National Instrument 45-106 and provincial securities regulations, providing comprehensive disclosure of business details, risk factors, and investment terms. While less extensive than a prospectus, a Limited Offering Memorandum still requires detailed disclosure to protect investor interests and maintain regulatory compliance. It's particularly valuable for growth-stage companies, real estate investments, and private equity offerings where a full prospectus exemption is available but substantial disclosure is still necessary or desirable.
