Regulatory Alerts2021-07-28
CSA Notice of Consultation: Draft Regulation to Introduce the Listed Issuer Financing Exemption
The Canadian Securities Administrators propose a new Listed Issuer Financing Exemption to allow reporting issuers listed on Canadian stock exchanges to raise up to $10 million through a streamlined offering document. This exemption replaces the costly short-form prospectus requirement for smaller capital raises, relying on the issuer's existing continuous disclosure record while imposing secondary market civil liability and an 180-day contractual right of rescission for misrepresentations. The proposal seeks public comment on key conditions including market capitalization-based limits, reporting obligations, and the scope of eligible securities and investor protections.
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