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TSX and TSXV join regulators in accommodating rights offerings

  • Securities - TSX Image

Jan 18, 2016

On January 18, 2016, each of the Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) announced policy changes to further create an attractive platform for issuers to carry out rights offerings while still protecting investors. Previously, on September 24, 2015, the CSA had announced amendments to the rules surrounding rights offerings to make the rights offering exemption more attractive to issuers with effect from December 8, 2015.

Prior to the TSX changes, a final Circular must have received TSX pre-clearance at least seven trading days prior to the record date. This has now been amended to five trading days. The TSX Staff Notice announcing the change also stated that drafts of the Notice and Circular or prospectus should be submitted to the TSX at least five trading days prior to finalization.

The TSXV Bulletin has similarly announced a reduction in the minimum time period between its pre-clearance of the rights offering documents and the record date from seven to five business days. The TSXV also intends to amend Policy 4.5 – Rights Offerings in its Corporate Finance Manual. Pending the changes to the TSXV Corporate Finance Manual, the TSXV has indicated that it will grant waivers, on application, to enable issuers to take advantage of the contemplated amendments.

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