Regulatory Alerts2019-09-05
Amendments to Policy Statement to Regulation 51-102 respecting Continuous Disclosure Obligations
Canadian securities regulators amended Policy Statement 51-102 to clarify that an acquisition constitutes a business acquisition under securities legislation even if it does not meet the accounting definition of a business. The amendments update the application of significance tests by specifying that non-venture issuers must satisfy two or more tests at a 30% threshold to classify an acquisition as significant. For venture issuers, an acquisition is deemed significant if it meets either the asset or investment test at a 100% threshold, with calculations based on the most recent audited annual financial statements.
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