Regulatory Alerts2021-07-28
Draft Amendments to Policy Statement to Regulation 45-106 respecting Prospectus Exemptions
Canadian securities regulators have introduced the Listed Issuer Financing Exemption to allow eligible reporting issuers to raise limited capital from any investor without a prospectus. The exemption requires issuers to file a concise disclosure document and news release before soliciting purchasers, while prohibiting the use of proceeds for significant acquisitions or restructuring transactions. Issuers must certify that their disclosure contains all material facts and is free of misrepresentations, subjecting them to contractual rescission rights and secondary market liability for non-compliance.
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