The Role of the Issuer
David Todd: Director of Sales OmniArch Capital
The information enclosed is for informational purposes only
and is not a solicitation as to any investment product.
This information is inherently limited in scope and does not
contain all of the applicable terms, conditions, limitations and
exclusions of the investment described herein. The information
contained herein may contain public information and is for
information purposes only. The views and opinions expressed
herein are the opinions and views of the publisher and reporter,
not created to promote sale of any investment product. This is not
a solicitation for sale or purchase of securities, without the appropriate
exemption documents being provided to prospective purchasers. This
investment is only for investors by way of subscription agreement.
Discussion Points
1. The Market
2. Role of the Issuer
3. Issuers and Vertical Markets
4. Bringing Product to Market
5. Product Examples
The Exempt Market
•
•
•
•
Sept 28, 2010 / NI 31-103
Exempt from the Prospectus
Exemptions Provincially Regulated
Includes
• OM Exemptions
• Hedge Funds
• Bonds & PPNs
Role of the Issuer
• To create and develop the investment product or opportunity
• To create the Offering Memorandum
• Register with the Provincial Securities Commission
• Present the product to EMDs (Exempt Market Dealers) for sale
• Some Issuers are also their own EMDs but this is not the norm
Vertical Market Applications
• Issuers operate in different Vertical Markets
• Prestige Capital / Building Hotels
• Chestermere Lands / Land Development
• Solar Income Fund / Green Energy
• 982 Media / P&A of Film Industry
Bringing Product to Market
• Issuers bring product to market through the Offering Memorandum
• The steps in getting to the OM are:
1. The Product “In / Development / Exit” is planned
2. The Analytics / Partnerships / Strategy are planned
3. The initial OM is written and corporate disclosures added
4. The OM is developed with / through law firms
5. The OM is registered with the commission
6. The OM is approved by the EMD
7. The OM must be presented to the investor
Product Examples
OM Dictates The Terms Of The Investment
•
•
•
•
5 Year Investment Term – Early Exit Available
Predictable Cash Flow
RRSP/TFSA/RIF/LIRA/Cash
$5,000 CDN Minimum Investment
OM Declares “How” The Investment Works
15 Year Time Frame
M
I
L
L
I
O
N
D
O
L
L
A
R
S
5% Interest (Coupon Rate) = $50,000
5 Year Hold
Protective Spread
$
3
0
0
K
10% Interest to Investor
= $30,000
Face Value
(Current Worth)
Liquidity Within The Exempt Market
• 1 Year Committed Funds
• 90 Days Written Notice
• Declining Redemption Fee
Media As An Asset Class
Non Correlation
Portfolio
Diversification
Senior Debt
Inversely
Related
EM Can Provide Non-Correlation
Print & Advertising of Motion Pictures
•
•
•
Investment in Senior Secured Loans
Last In First Out (LIFO)
Secured against the gross cash flow
of the film
Investments Can Be Inversely Related
Box Office
S&P 500
10
20
09
20
08
20
07
20
06
20
05
20
04
20
03
20
02
20
01
20
20
00
12
10
8
6
4
2
0
Investment Overview
Summary of Fund
• $5,000 CDN Minimum Investment
(Registered Available)
• 6% Preferred return (paid quarterly)
and 50% profit participation
• RRSP / TFSAS / RIF / LIRA / Cash
• Potential 10 Year Dividend Stream
• ROC starts approximately 5 yrs after
investment date
Product Examples
• Examples have provided:
• Diversification
• Non-Correlation
• Inverse Relationship
• Predictable Returns
Canadian Exempt Market
“The Exempt Market is going main stream”…