Family, Friends and Business Associates
In the spring and summer of 2017, ASC staff conducted a review of the Family, Friends and Business Associates prospectus exemption that is available to companies raising capital under conditions contained in section 2.5 of National Instrument 45-106 Prospectus Exemptions. The review was conducted by way of a survey of investors who had purchased securities from companies relying on the exemption. The intent of the review was to better understand the use of this exemption.
The results of the analysis of the survey responses have been summarized in ASC Notice 45-703 Report on the Use of the Family, Friends and Business Associates Prospectus Exemption, which is available on the ASC's website. In total the ASC received 232 responses to the survey, a response rate of 46 per cent, representing 141 unique companies that relied on the exemption during the sample period. The ASC sincerely thanks those investors that took the time to complete the survey.