On September 16, 2020 the TSX Venture Exchange (the “Exchange”) issued a bulletin on minimum pricing requirements. The Exchange had previously issued a bulletin (the “April 8, 2020 Bulletin”) providing notice that in response to the COVID-19 pandemic, the Exchange would provide temporary relief (the “Temporary Relief”) from certain requirements of the Exchange’s Corporate Finance Manual (the “Manual”).

According to the bulletin, the purpose of the April 8, 2020 temporary relief  was to revise the minimum price at which Listed Shares may be issued from $0.05 to $0.01 in certain circumstances. If the Market Price of an Issuer’s Listed Shares is not greater than $0.05, the minimum price at which that Issuer may issue its Listed Shares in particular circumstances is equal to that Market Price, subject to a minimum price of $0.01. If the Market Price of an Issuer’s Listed Shares is greater than $0.05, the minimum price at which that Issuer may issue its Listed Shares remains equal to the Market Price less the existing allowable maximum discounts based on closing price, subject to a minimum price of $0.05. In the case of any discrepancy, the details of the Temporary Relief set out in the April 8, 2020 Bulletin prevail.

The April 8, 2020 Bulletin stipulates that such Temporary Relief applies to Listed Shares that are issued on or before September 30, 2020. The Exchange now wishes to provide notice that it is extending the Temporary Relief such that it will apply to Listed Shares that are issued on or before December 31, 2020.

The Bulletin is available here.

For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.

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