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What is an Eligible Investor

An explanation of Eligible Investors

Last updated on March 3, 2022

To qualify as an eligible investor (within the meaning of NI 45-106) as an individual (Eligible Investor), you must meet at least one of the following requirements:

  • You have net assets (total assets minus total liabilities), either alone or with a spouse, exceeding $400,000.
  • You have net income before taxes exceeding $75,000 in each of the previous two calendar years, and you expect to exceed $75,000 in the current year.
  • You have net income, either alone or with a spouse, exceeding $125,000 in each of the previous two calendar years, and you expect to exceed that level in the current year.
 

An Eligible Investor is sometimes characterized as an individual that, due to their wealth, may participate in certain investment opportunities that would otherwise not be available to the general public. Investments in securities can be risky, and thus, those with a higher level of wealth are better able to manage risky investments.

The dollar amount you are allowed to invest in securities issued under the offering memorandum prospectus exemption by any issuer depends on your province or territory of residence at the time of your investment.

addy will periodically verify whether you are an Eligible Investor, non-Eligible Investor, or accredited investor and ask you to attest your total investments in securities issued under the offering memorandum prospectus exemption.

In Canada, securities regulations limit the amount of money you can invest in certain offerings.

addy compiles with all national and provincial regulations and laws. We distribute our offerings under National Instrument 45-106 , known as the offering memorandum exemption. This exemption allows us to sell you our securities with some restrictions. One of the restrictions is how much you’re allowed to invest under this exemption.

addy compiles with all national and provincial regulations and laws. We distribute our offerings under section 2.9 of National Instrument 45-106, known as the offering memorandum exemption. This exemption allows us to sell securities without a prospectus with some restrictions and requirements, including whether you are an Eligible Investor in your province or territory of residence.

 
 
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