Earlier this year we noted that Canadian securities regulators in all provinces and territories except Ontario and Newfoundland and Labrador had published for comment a proposed prospectus exemption that would permit certain TSX Venture Exchange, Toronto Stock Exchange or Canadian Securities Exchange listed issuers to distribute securities to existing security holders without a prospectus.
The British Columbia Securities Commission adopted the existing security holder exemption as BC Instrument 45-534 on March 13, 2014, and has recently published a presentation explaining the exemption. The BCSC 's presentation contains an example of how the exemption would be applied to a transaction involving a BC-based issuer, including details on structuring, news release content, subscription agreement content, and associated closing and post-closing matters.
The presentation is available for download here.
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