Investor Qualification

• Exempt Market Dealers are bound by KYC (know your client) obligations and will require detailed background information on clients to assess suitability of investment.
• Some investments are not open to Eligible/Non-eligible.
• Investor Qualification levels for individuals are as follows:
  • Non-eligible – can invest up to $10,000 per year in Exempt Securities, subject to suitability assessment.
  • Eligible  – can invest up to $100,000 per year in Exempt Securities, subject to suitability assessment.
  • Accredited – no limit on individual investments in Exempt Securities, subject to suitability assessment.
  • Permitted – no limit on investment and limited information taken. Suitability requirement can be waived.

Eligible Investors

• Net income in last two years of at least $75,000 (individual) or $125,000 (with spouse) and expect this to continue.
• Net Assets of at least $400,000.
• Can apply to individuals or entities.

Accredited Investors

• Individuals having Net income in last two years of at least $200,000 (individual) or $300,000 (with spouse) and expect this to continue.
• Individuals with Net Financial Assets of at least $1,000,000.
• Companies or individuals with Net Assets of at least $5,000,000.

Permitted Clients

• Most sophisticated clients/entities.
• Individuals having Net Financial Assets of at least $5,000,000.
• Firms with Net Assets of at least $25,000,000.
• Can also apply to governments, banks, investment funds, registered dealers.