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New securities regulations allow Canadian listed issuers, subject to several conditions, to sell to current shareholders

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The Canadian Securities Administrators, a voluntary umbrella organization of Canada’s provincial and territorial securities regulators, has issued a new Existing Shareholder Exemption that would, subject to several conditions, allow issuers listed on a Canadian exchange to raise money by selling securities to their existing shareholder base.

Additional Information:

Company: Boughton Law Corporation
Website: http://www.boughtonlaw.com/
Date Published: Mar 19, 2014
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for Investmentpitch Media

The Canadian Securities Administrators, a voluntary umbrella organization of Canada’s provincial and territorial securities regulators, has issued a new Existing Shareholder Exemption that would, subject to several conditions, allow issuers listed on a Canadian exchange to raise money by selling securities to their existing shareholder base.

Boughton Law Corporation’s Rory Godino organized and led an advocacy group comprised of almost all the independent investment dealers based in British Columbia, who engaged in a consultative process with the BC Securities Commission and the TSX Venture Exchange on a specific initiative to improve access to capital for listed companies.

The rationale is that an issuer’s existing shareholders already have familiarity with the issuer, have previously made an investment decision to purchase securities of that issuer and have the ability to rely on the issuer’s continuous disclosure record.

We’d like to thank Boughton Law Corporation for providing us with these details.

A couple of the key components of this new exemption are as follows:

- it applies to equity securities currently listed on the Toronto Stock Exchange, the TSX Venture Exchange, and the Canadian Securities Exchange

- each investor must confirm in writing that they already owned shares on the day prior to the offering

- the offering must be made to all existing shareholders

- unless the investor has obtained suitability advice from a registered investment dealer, the investor can only invest a maximum of $15,000 per issuer in a 12-month period

The full details are available on the BC Securities Commission website www.BCSC.BC.CA under BC Instrument 45-534.

Boughton Law intends to hold seminars to explain the parameters of this new Existing Shareholder Exemption, and we encourage you to contact any member of their Securities Group at www.boughtonlaw.com if you want more information.

I’m Samantha Deutscher for Investmentpitch media
For more video news, and to view our disclaimer, please visit our website at www.investmentpitch.com
This video is for information purposes only and it not a recommendation to buy or sell any securities.