41-307 - Concerns regarding an issuer’s financial condition and the sufficiency of proceeds from a prospectus offering [CSA Staff Notice - Lapsed]
| Published Date: | 2012-03-02 |
|---|---|
| Effective Date: | 2012-03-02 |
| Rescinded Date: | 2021-03-25 |
| Document(s): |
Purpose
The purpose of this staff notice is to alert issuers (other than investment fund issuers) and their advisors about our approach where there are concerns regarding the financial condition of an issuer and/or the sufficiency of proceeds in the context of a prospectus offering. In limited circumstances, these concerns may affect our ability to recommend that a receipt be issued for a prospectus. This staff notice applies to all prospectus reviews, regardless of whether the offering is an IPO, new issue or secondary offering.
In this notice, we describe issues that have arisen in past prospectus reviews and explain the types of comments we have raised about an issuer’s financial condition and/or the sufficiency of proceeds.
This guidance applies to issuers that have short-term liquidity concerns and/or offerings that do not appear to be raising sufficient proceeds. We recognize the importance of capital formation in Canada, and this guidance is not intended to inhibit capital raising through a prospectus offering other than where there are significant investor protection concerns.