The Ontario Securities Commission (OSC) granted an exemption order to a not-for-profit corporation, whose mandate is to fund research and development projects in genomics and associated technologies. Despite not meeting the standard definition of an accredited investor under section 73.3 of the Securities Act (Ontario) and National Instrument 45-106 Prospectus Exemptions, the corporation demonstrated through its application that its staff are experts in genomics and life sciences, capable of assessing the viability of investment projects. Furthermore, all investment decisions are to be reviewed by a Private Sector Advisory Committee with significant investment experience.
The OSC decided that exempting the corporation from the prospectus requirements under section 53 of the Securities Act (Ontario) would not be against the public interest. The exemption is subject to conditions, including that the corporation purchases as principal, the issuer of the securities files a report of exempt distribution if the trade is a distribution, and that the first trade in securities is considered a distribution subject to resale restrictions. This exemption order will expire in two years unless renewed.