British Columbia Securities Commission: Canadian Securities Regulators Propose New Exemption for Distributions to Existing Security Holders
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 11/21/13 -- The securities regulatory authorities in British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, New Brunswick, Nova Scotia, Yukon, Northwest Territories, Nunavut, and Prince Edward Island today published for comment a proposed prospectus exemption that would, subject to certain conditions, allow issuers listed on the TSX Venture Exchange (TSX-V) to raise money by distributing securities to their existing security holders.
Currently, if a TSX-V issuer wants to distribute securities to its existing security holders who are not accredited investors, they must use a prospectus or a prospectus exemption that requires a disclosure document, such as an offering memorandum or a rights offering circular.
Data shows that TSX-V issuers rarely use prospectus offerings or prospectus exemptions that require disclosure documents. This means that retail security holders who want to make an additional investment in a TSX-V issuer must generally buy securities on the secondary market at the market price and pay brokerage fees. This also means that the TSX-V issuers do not have access to a potential source of capital.
"The proposed exemption would allow TSX-V issuers to distribute securities to existing security holders, relying on their continuous disclosure record, thereby reducing the cost for investors and providing issuers with access to an additional source of financing," said Bill Rice, Chair of the CSA and Chair and Chief Executive Officer of the Alberta Securities Commission.
In order to acquire securities under this exemption, an existing security holder would have to confirm in writing that they were a security holder as of the record date for the offering. This limits use of the exemption to investors that have already made an investment decision in the
issuer. Other key conditions designed for investor protection include:
All participating CSA jurisdictions are inviting comments until January 20, 2014.
A copy of the CSA notice and proposed exemption is available on participating CSA member websites.
The CSA, the council of the securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.
Contacts:
British Columbia Securities Commission
Richard Gilhooley
604-899-6713
Alberta Securities Commission
Mark Dickey
403-297-4481
Autorite des marches financiers
Sylvain Theberge
514-940-2176
Financial and Consumer Services Commission, New Brunswick
Wendy Connors-Beckett
506-643-7745
Manitoba Securities Commission
Kevan Hannah
204-945-1513
PEI Securities Office
Janice Callbeck
Office of the Attorney General
902-368-6288
Nova Scotia Securities Commission
Tanya Wiltshire
902-424-8586
Office of the Yukon Superintendent of Securities
Rhonda Horte
867-667-5466
Nunavut Securities Office
Louis Arki
867-975-6587
Northwest Territories Securities Office
Donn MacDougall
867-920-8984
Financial and Consumer Affairs Authority of Saskatchewan
Daniela Machuca
306-798-4160
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Datum: 21.11.2013 - 17:00 Uhr
Sprache: Deutsch
News-ID 319261
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