Private Placement
A private placement is a financing in which a company sells securities to a limited group of investors outside a public prospectus, relying on exemptions in Canadian securities law — a fast, common way for smaller issuers to raise capital.
What is a private placement?
Rather than running a full public offering, a company can issue shares (often with warrants) under prospectus exemptions in National Instrument 45-106 — for example to accredited investors. The company then files a Report of Exempt Distribution (Form 45-106F1) disclosing the deal.
Securities bought in a private placement are typically subject to a four-month hold period (under NI 45-102) before they can be resold, and deals often include warrant coverage — a right to buy more shares later at a set price.
When an insider participates in their own company's private placement, it's a notable signal: they're putting capital in alongside outside investors. Form55 tracks private placements (deal size, pricing, warrant coverage, and insider participation) and shows them on the company page.