It's a private placement of shares. The chapter is titled "Chapter 8 -- Notice of Exempt Financings", The 45-106 doc's first line is this "NATIONAL INSTRUMENT 45-106 – PROSPECTUS AND REGISTRATION EXEMPTIONS - A CONSOLIDATION OF CANADIAN PRIVATE PLACEMENT RULES" (doc link: http://foglerrubinoff.com/pdfs/Pub_Homepage_and_Mainpage/National%20Instrument%2045-106.pdf )
The 45-106 doc details all of the different exemptions that can be used with that particular form, I've included a narrowed down list: Accredited Investor Exemption
Family, friends and business associates
Private issuer
Employee, Executive Officer, Director and Consultant Exemptions
Offering Memorandum Exemption
Other Exemptions • an exemption for rights offerings provided that the offering is in compliance with National Instrument 45-101 – Rights Offerings; • an exemption for a trade by an issuer that involves securities of its own issue distributed as consideration for the acquisition of petroleum, natural gas or mining properties or any interest therein; • an exemption for securities issued by an issuer to a creditor in settlement of a bona fide debt of the issuer; • an exemption for trades in non-syndicated mortgages on real property by a registered or licensed person; • an exemption for trades that are a conversion, exchange or exercise of securities automatically, at the option of the holder or at the option of the issuer; • in Ontario only, certain registration exemptions for trades in Ontario by market intermediaries are removed, preserving the province's former universal registration regime.