CSA publishes update on use of the streamlined rights offering exemption for reporting issuers
Jul 26, 2018
On July 26, 2018, the Canadian Securities Administrators (CSA) published CSA Staff Notice 45-323 (revised) "Update on Use of the Rights Offering Exemption" to provide an update on the use of the streamlined rights offering exemption for reporting issuers adopted in December 2015.
According to the CSA, the exemption has been used 60 times in the past two years, raising $535.5 million across the country.
The CSA report also identified a number of compliance and disclosure issues with the use of the streamlined exemption and provided suggestions for improvements, namely in regards to: stand-by commitments, use of available funds and closing news release.
Review the Staff Notice on the OSC's website and a summary on Stikeman Elliot's website.