FR

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

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

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

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

RESCO Mortgage Investment Corporation has for primary objective to make investments in mortgages against real property located in Canada in order to generate sustainable and stable income while preserving investment capital for individual and institutional investors.

RESCO Mortgage Investment Corporation

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.

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

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

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

LendEase Direct Mortgage Investment Corporation (LED MIC) is a private, premier non-bank lending firm. LED sources, underwrites and manages a portfolio that primarily consists of residential mortgages and commercial mortgages located in the Metropolitan areas of Canada. 

Lendease Direct MIC

ICM Property Partners Trust aims to preserve capital, deliver income and achieve strong growth through diversified and tactical allocations to exclusive real estate opportunities in investment grade markets.  ICM Property Partners Trust invests in a diversified portfolio of commercial real estate projects across North America. With a mandate to create value, the fund searches for opportunities to provide investors with strong cash flow (5% - 7% p.a.) and long-term growth (9% - 12% p.a.)

ICM Property Partners Trust 

Newlook Capital is a private equity firm that currently has 4 industry-specialized funds available to the retail and institutional markets. Each fund has its own focused, experienced, and aligned management, and a defined strategy. Investing throughout Canada and the U.S. with a preference for companies that exhibit a solid tangible assets base, Newlook Capital is focused on and current holdings include; multifamily real estate and services in the U.S., industrial services in Canada and the U.S., dental practices, and QSR in Canada.

Newlook Capital

NationWide Self Storage provides a unique opportunity for investors wanting exposure to real estate without the headaches or downsides associated with residential or commercial real estate investments. NationWide Self Storage trust offerings are structured to provide investors with monthly income, long-term growth and asset appreciation through a portfolio of either standalone self storage properties or self storage properties with complementing car wash facilities.

NationWide Self Storage

Probity Mining 2019-II Short Duration Flow-Through Limited Partnership – (the “Partnership”) will invest in Flow-Through Shares of Resource Issuers engaged in mining exploration, development and/or production in Canada. The investment objectives are to provide limited partners with a tax assisted investment in flow-through shares with a view to maximizing the tax benefit and achieving capital appreciation for limited partners.

Probity Capital Corporation

Clear Sky Capital is a private equity investment management firm specializing in the acquisition and management of private equity and real estate investments. Founded in 2009 and headquartered in Phoenix, AZ, the Firm is an active investor in value-added opportunities.

Clear Sky Capital

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.