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Exempt Market

Exempt Market

A specialized and disciplined selection committee.

Cape Cove offers a selection of exempt market products which have undergone a rigorous due diligence process by our product review committee.

Exempt market securities do not require the issuer to file prospectus and therefore the due diligence process is essential when selecting products to offer our clients. Even though these products are primarily for accredited and eligible investors, Cape Cove always ensures that these investments are suitable for its clients.

Cape Cove operates as an exempt market dealer to provide its clients with alternative investments that are not correlated with the stock or bond markets. These innovative products have been gaining in popularity in recent years and Cape Cove wants to support its clients as they explore these new opportunities.

Products on the Exempt Market

AGROTECH VENTURES inc. will gain direct and indirect exposure to the global Agricultural, Food and Beverage industry with a focus on the hemp and the cannabis industry. In order to mitigate the risk, AGROTECH will optimally target between 8 to 10 projects.

Type: Revenue and profit participation

AgroTech Ventures

Silvermont Finance intends to build a diverse portfolio by funding loans to borrowers secured by Hypothecs, Mortgages, guarantees, and other forms of collateral. Silvermont Finance will also make venture capital investments in which it shall have an active role.

Type: Revenue and profit participation

Silvermont Finance

LiveWell Foods Canada Inc. (Ottawa, Canada) is dedicated to the highest quality standards in delivering cannabis and hemp products.  The company has established partnerships with leading sector names in Canada, with interests and operations abroad. 

Type: Growth

LiveWell Foods

The Invest X Global Growth Equity Trust provides access to investments in late-stage private issuers in the technology, cloud computing, social media and other high growth areas which meet the fund’s pre-determined investment criteria.

Type: Growth

Invest X

The Intelife Partnership was formed to carry on business in the security and smart home automation industry in Canada. Based on a business model that is simple and easy to understand, leveraging a predictable revenue approach with real growth potential.

Type: Revenue and profit participation

Intelife

Avenue Living Real Estate Core Trust is an income producing, diversified real estate income trust. The Core Trust provides the opportunity for investors to invest in a diversified portfolio of stabilized multi-residential rental properties, and participate in the profits derived from the portfolio.

Type: Return of capital and growth

Avenue Living

AP Capital Mortgage Investment Corporation (MIC) is a privately held corporation that operates a mortgage business in Western Canada through short-term (1 year) mortgages.

Type: Revenue

AP Capital MIC

ICM (IX) Real Estate Trust is a real estate investment opportunity focused on delivering income and growth for investors through the acquisition of a diversified portfolio of properties, predominantly in the U.S.

Type: Stable

ICM Realty Group

Green River Finance has been in the private lending business for over 16 years. They offer highly profitable short term micro loans in the explosive growth market of second chance credit. GreenRiver closely follows lending regulations and has all the necessary permit to lend short term loans.

Type: Revenue

Green River Finance Canada

Centurion Asset Management Inc. is a $ 1.5 B private REIT and private debt fund company founded in Toronto in 2006. The firm has 150 staff and manages three funds: The Centurion Apartment REIT, The Centurion Real Estate Opportunities Trust and The Centurion Financial Trust.

Type: Return of capital and growth

Centurion Asset Management Inc.

InvestPlus Real Estate Investment Trust (IP REIT) is a private real estate investment fund, based in Calgary, Alberta. The REIT Provides an opportunity to invest in a diversified portfolio of multi-unit residential apartment and commercial buildings in western Canada. 

Type: Growth

InvestPlus Real Estate Investment Trust

The Invico Diversified Income Fund is a diversified portfolio of high yield lending & investment opportunities. A private investment offering focused on generating monthly income, through a diversified portfolio with asset collateralization or direct ownership in private assets.

Type: Stable

Invico

MarDi.info-Prevtec inc. offers corporate bonds with an annual return of 8%Strategically well positioned with its partners, this rapidly expanding company is also attracting attention in the global animal pharmaceutical industry.

Type: Revenue

MarDi.info-Prevtec inc.

The MAVAN Tech Opportunity Fund breaks down the barriers for Canadians to benefit from investing in technology, by providing access to exclusive investment opportunities in some of the most promising and successful companies around the world.

Type: Growth

MAVAN Capital Partners

The Equiton Residential Income Fund Trust (the "Fund") is a real estate investment trust (REIT) that specializes in residential income properties, including apartments and student housing in Canada.

Type: Growth

Equiton Residential Income Fund Trust

Malina intends to build a diverse portfolio of the best companies associated or related to acquisitions in Energy and Natural Resources Assets.

Type: Growth and Stable Cash Flow

Malina

Marquest Asset Management is committed to providing Canadian retail investors with access to some of Canada’s premier asset managers through quality investment solutions, and to building long-term relationships with our clients with the delivery of personalized client service and timely, transparent communications.

Type: Super flow-through

Marquest

EMD-KYP Process

Our “know -your product” (KYP) process for Exempt Issuers and their products is based on a thorough and independent review by our Product Review Committee.

We first start with a preliminary assessment of the following areas:

  • Background checks on the issuer

  • Assessment of the issuer’s track record

  • Verification of claims in offering documents (including marketing material)

  • Various economic and financial stress tests

  • Review of risk factors disclosed in offering

If the results are satisfactory, we continue to a full due diligence where we analyze in detail:

  • The issuer’s corporate structure and governance

  • Review of all financial documents

  • Market assessment

  • Competitive analysis

  • Interview with management team and key employees

  • Technology and/or operations assessment

We also insist that our Issuers provide us with reviews and updates throughout the year. With all the above, we can confidently assess if these products are suitable for our clients.