Canadian securities regulators adopt streamlined capital-raising option for Canadian-listed issuers

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Sep 08, 2022

On September 8, 2022, the Canadian Securities Administrators (CSA) adopted a new prospectus exemption for issuers listed on a Canadian stock exchange, aimed at providing a more efficient way for them to raise capital.

The Listed Issuer Financing Exemption will reduce costs for issuers raising smaller amounts of capital through the public markets. It will also allow smaller issuers greater access to retail investors and provide retail investors with a broader choice of investments.

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.

Provided all necessary Ministerial approvals are obtained, the amendments will come into force on November 21, 2022.

Review the press release and prospectus exemption on the CSA's website.

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