Regulatory Alerts2021-07-28
Draft Regulation to amend Regulation 45-106 respecting Prospectus Exemptions and concordant regulations
Canadian securities regulators introduced the Listed Issuer Financing Exemption to allow reporting issuers with listed equity securities to raise up to $10 million without a prospectus. The exemption imposes strict eligibility criteria, including active operations, timely disclosure compliance, and limits on the use of proceeds for significant acquisitions or restructurings. Issuers must file a standardized offering document and news release, while purchasers are granted specific contractual rights of rescission and access to secondary market civil liability protections.
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