Fecteau Côté Manocchio is an exempt market dealer registered with the Autorité des marchés financiers (AMF). As such, employees and representatives of the firm are not authorized to offer or solicit the purchase of securities outside the province of Quebec and which are not covered by a prospectus exemption under Regulation 45-106 of the Secutities Act (generally only available to accredited investors).
SPECIFIC RIKS ASSOCIATE WITH EXEMPT MARKET SECURITIES
An investment in exempt market securities can be a high-risk, speculative investment which may lose all of its value. The client should be capable of evaluating the merits and risks of the investment and should be able to bear the risk of losing all of their investment, in a worst-case scenario. Exempt market securities are subject to resale restrictions which restrict the client from trading, selling or transferring the securities purchased.
The client is solely responsible for ensuring compliance with the resale restrictions of exempt market securities and is advised to consult with its legal advisors regarding those restrictions. Issuers of exempt market securities generally do not have to file a prospectus. A prospectus describes the investment in detail and gives you some legal protections. There is a risk that the issuer will be unable to meet interest and principal payments on its obligations on a timely basis.
Furthermore, the securities could be from a non-reporting issuer. This type of issuer does not have to publish financial information or notify the public of changes in its business. Every investment will have its own risks. Investors should read carefully any offering documents and other documents and information filed by a reporting issuer that can be access through SEDAR filing system at www.sedar.com.
Use of Borrowed Funds
Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines. As a result, your losses will be magnified in comparison to what you would suffer if you had invested only using your own money.