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The OSC says exempt market investing has been picking up with about $27 billion raised in 2016 by about 1,600 Canadian issuers.

About 57% of Canadian issuers in Ontario’s exempt market were small issuers, raising less than $1 million annually, the OSC said in its annual exempt market report. The small issuers accounted for less than 1% annual gross proceeds raised.

New prospectus exemptions have gained traction, with about 400 exempt market issuers (25%) relying on new prospectus exemptions.

Read: Ontario ready to shake up financial industry

Exempt market issuers in the province have primarily used the accredited investor exemption, accounting for about 90% of gross proceeds raised, the OSC said.

The family, friends and business associates exemption was the second-most used exemption. It allows issuers to raise capital from investors who qualify as family members, close personal friends or close business associates of the principals of the issuer.

Read the full report here.

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