Frequently Asked Questions about Rights Offerings
Does the Passport system apply to rights offerings?
No. An issuer doing a rights offering in BC and other Canadian provinces should refer to NI 45-101 Rights Offerings. A separate filing including the rights offering circular and related materials must be made in each jurisdiction where the issuer proposes to offer the rights and each jurisdiction will generally issue an objection letter or notice of acceptance.
What materials are required when filing a rights offering?
If an issuer is filing its rights offering in BC and other jurisdictions, the required filings for rights offerings are described in NI 45-101 Rights Offerings, and Companion Policy NI 45-101CP. Form 45-101F1 describes the information required in the circular. The material must be filed on SEDAR with the securities commission in each jurisdiction where the issuer proposes to offer the securities.
Who reviews rights offerings - the commission or the TSX Venture Exchange?
If an issuer is listed on the TSX Venture Exchange, the rights offering will be reviewed by both the Commission and the TSX Venture Exchange. The Commission will review the rights offering for compliance with National Instrument 45-101 Rights Offerings, while the Exchange will review the rights offering for compliance with Policy 4.5 Rights Offerings, in its Corporate Finance Manual .