News Release
Canadian Securities Regulators propose significant changes to the rights offering regime
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Date:
2014-11-27 -
Number:
2014/92
Vancouver – The Canadian Securities
Administrators (CSA) today published for comment proposed amendments that would create a streamlined prospectus exemption for rights
offerings by reporting issuers.
“Although rights
offerings can be one of the fairest ways for issuers to raise capital, in that
they allow all existing investors to participate on a pro rata basis, they are
seldom used because of the time and costs associated with them,” said Bill Rice, Chair of the CSA and Chair and
Chief Executive Officer of the Alberta Securities Commission. “The proposed exemption is designed to make rights offerings more
attractive to reporting issuers by decreasing both the time and costs involved.”
One of the key
proposals is to remove the current regulatory review process prior to use of
the rights offering circular. The CSA anticipates this will significantly
decrease the amount of time it takes to conduct an offering. The CSA also
proposes increased investor protection through the addition of civil liability
for secondary market disclosure, and the introduction of a more user-friendly
form of rights offering circular document.
The proposed amendments would also update other
rights offering requirements and repeal the prospectus exemption for rights
offerings by non-reporting issuers.
The CSA notice and proposed amendments are available
on CSA members’ websites. The comment period is open until February 25, 2015.
The CSA, the council of the securities regulators of Canada’s
provinces and territories, co-ordinates and harmonizes regulation for the
Canadian capital markets.
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For more information:
Richard Gilhooley | Mark Dickey |
Carolyn Shaw-Rimmington | Sylvain Théberge |
Kevan Hannah | Andrew Nicholson Financial and Consumer Services Commission, New Brunswick 506-658-3021 |
Tanya Wiltshire | Janice Callbeck |
Don Boyles | Rhonda Horte Office of the Yukon Superintendent of Securities 867-667-5466 |
Louis Arki | Gary MacDougall |
Shannon McMillan |