The Exempt Market
A section of Canadian capital markets where financial securities are offered under prospectus exemptions.
Canadian companies in mining, oil & gas and renewable energy sectors require financing for exploration and development of their projects. Certain resource companies offer flow-through shares to accredited investors as a tax incentive investment. The credits from exploration expenses get renounced to the investor from the issuer. Purchasers of flow-through shares will receive up to 75% of their investment in tax credits, thus creating a tax advantaged product. The exact percentage varies by province.