Offering Memorandum (“OM”) Prospectus Exemption

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Offering Memorandum (“OM”) Prospectus Exemption

Effective January 13, 2016, issuers in Ontario were able to take advantage of the offering memorandum (“OM”) prospectus exemption .

Effective April 30, 2016, the securities commissions in each of Alberta, Saskatchewan, Quebec, New Brunswick and Nova Scotia are amending their existing OM exemptions such that the new OM exemption mirror that of Ontario.

Thus, effective April 30, 2016, in Canada, there will be three OM regimes:

– Alberta, Saskatchewan, Ontario, Quebec, New Brunswick and Nova Scotia – uniform. Notice of the amendments may be found here http://www.albertasecurities.com/Regulatory%20Instruments/5206516-v1-CSA_Notice_with_Annexes_attached.pdf
– British Columbia and Newfoundland and Labrador – no changes to the current OM exemption available in these provinces. Investors will be able to purchase securities so long as they sign a risk acknowledgement form after receiving an OM; and
– Manitoba, Prince Edward Island, Nunavut, Northwest Territories and Yukon – no changes to the current OM exemption. Investors will be able to purchase more than $10,000 of securities only if they meet the definition of an “Eligible Investor.”

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