Regulatory Alerts2019-05-09
CSA Notice of Consultation: Draft Regulation to Amend Regulation 44-102 Respecting Shelf Distributions for At-the-Market Distributions
The Canadian Securities Administrators propose amendments to Regulation 44-102 to replace the need for individual exemptive relief for at-the-market distributions of equity securities. The draft regulation introduces exemptions from prospectus delivery and form requirements while removing the 10% aggregate cap and provisions for instalment receipts to reduce regulatory burden. Issuers must choose between two options for conducting these distributions: one imposing a 25% daily trading volume cap or a highly liquid securities test, and another with no liquidity requirements.
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