The Canadian Securities Administrators (CSA) have published CSA Staff Notice 45-330: Frequently Asked Questions about the Listed Issuer Financing Exemption (The Staff Notice).
The Staff Notice answers some of the frequently asked questions (FAQs) on the listed issuer financing exemption (the exemption) adopted by all securities regulatory authorities in Canada in November 2022. Subject to certain conditions, the exemption allows reporting issuers listed on a Canadian exchange to raise the greater of $5,000,000 or 10% of the issuer’s market capitalization to a maximum total dollar amount of $10,000,000 in a 12-month period by distributing securities to investors.
The list of FAQs is not exhaustive, but it includes key issues and questions market participants have posed to us and our preliminary observations on offerings using the exemption to date. CSA staff advise they may update these FAQs from time to time as necessary.
CSA Staff Notice 45-330: Frequently Asked Questions about the Listed Issuer Financing Exemption is available for download from the websites of participating members.
For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.
This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.
