The CSE is happy to report that the Canadian Securities Administrators (CSA) have included the CSE to changes made to Multilateral CSA Notice 45-312 – Proposed Prospectus Exemption for Distributions to Existing Security Holders. This rule applies in all provinces except Ontario and Newfoundland, and we are encouraging those jurisdictions to climb aboard ASAP.
It should be noted that the Ontario Securities Commission (OSC) will also be introducing several capital raising prospectus exemptions in the coming week – more to come on this topic as details emerge.
In effect, this exemption allows companies to raise funds from existing shareholders via private placements without having them meet other exemption criteria such as accredited investor status. Incumbent investors will benefit from expanded investment opportunities as a result of this exemption – a win-win for listed companies and their shareholders.
Regarding the additions to exemption, Bill Rice, Chair of the CSA and CEO of the Alberta Securities Commission (ASC), had this comment:
“Certain changes to the exemption were made in response to suggestions that were submitted, including expanding it to include issuers listed on the TSX and CSE.”
CSE is pleased to know that its comments on the matter were recognized and responded to. You can read the CSE comment letter here, originally submitted on January 17th, 2014.
The Exchange would also like to thank its community supporters, including many in the legal community that also forwarded their support of CSE’s inclusion into the exemption.
Further Information Regarding CSA Notice 45-312
To read the full press on the BCSC website please visit: https://www.bcsc.bc.ca/release.aspx?id=19338
The full exemption can be found on the BCSC website as well: https://www.bcsc.bc.ca/policy.aspx?id=19324&cat=4%20-%20Distribution%20Requirements