TSX Venture Exchange (TSX-V) recently published an update for members on the Canadian Securities Administrators’ (CSA) Listed Issuer Financing Exemption (the Exemption) (discussed in-depth here).
The Exemption is designed to streamline the capital raising process for smaller listed prospectus issuers by reducing the costs for raising smaller amounts through the capital markets.
TSX-V staff note that securities issued under the Exemption will not be subject to the four-month hold period set out in section 2.5 of National Instrument 45-102 – Resale of Securities. As a result, and subject to regulatory approval, the TSX-V intends to make certain changes to the definition of “Exchange Hold Period” in Policy 1.1 – Interpretation of the TSX Corporate Finance Manual to enable Issuers to take advantage of the intended benefits of the Exemption.
It is anticipated by TSX-V staff, that with the granting of the necessary Ministerial approvals, the Exemption will come into force November 21, 2022.
The TSX Corporate Finance Manual is available for reference online.
Copies of CSA Notice of Amendments to National Instrument 45-106 Prospectus Exemptions to Introduce the Listed Issuer Financing Exemption are available for download from websites of CSA 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.