Capital Markets:
NEW PROSPECTUS EXEMPTION FOR CANADIAN-LISTED ISSUERS
The Canadian Securities Administrators (CSA) is implementing a new prospectus exemption for issuers listed on a Canadian stock exchange.
The prospectus exemption will be available to issuers that have been a reporting issuer in a Canadian jurisdiction for at least 12 months and have filed all continuous disclosure documents required under Canadian securities legislation. Eligible issuers will need to file a short offering document.
Issuers using this exemption may annually raise up to the greater of $5 million or 10 per cent of the issuer’s market capitalization, to a maximum of $10 million. Securities issued under the exemption will be freely tradeable.
The amendments will come into force on November 21, 2022, pending Ministerial approvals.