45-518 - Transitional Resale Relief for certain Securities of Exchange Issuers [BCI - Rescinded]

BRITISH COLUMBIA SECURITIES COMMISSION

BC INSTRUMENT 45-518

The Commission, having considered that to do so would not be prejudicial to the public interest, orders that effective November 30, 2001:

1. the attached BC Instrument 45-518 entitled "Transitional Resale Relief for certain Securities of  Exchange Issuers" is made.

November 23, 2001.

Douglas M. Hyndman
Chair

(This part for administrative purposes only and is not part of the Order)

Authority under which Order is made:
Act and sections:- Securities Act, section 76
Other (specify):-

BC INSTRUMENT 45-518

Transitional Resale Relief for certain Securities of Exchange Issuers

Order Under Section 76 of the Securities Act

Interpretation
Unless the context otherwise requires, terms defined in the Act or the Securities Rules have the same meaning in this Instrument. 

Order
1. Any trade of a security of an exchange issuer acquired by the seller before November 30, 2001 under sections 74(2)(1) to (6), (16), (18), (19), (23), or (25) of the Act or section 128(a), (b), (c), (e), (f) or (h) of the Securities Rules is exempt from section 61 of the Act if:

(a) if the trade is in a security acquired by the seller under section 74(2)(1) to (6), (16), (19), (23), or (25) of the Act or section 128(a), (b), (c), (f) or (h) of the Rules, 12 months have elapsed from the earlier of the date of issue of the security and the date a written agreement committing the seller to acquire the security, subject only to any required regulatory approval, has been executed by all parties to the agreement, if the consideration for the security is cash, the seller has irrevocably committed the funds to acquire the security;

(b) if the trade is in a security acquired by the seller under 74(2)(18) of the Act, 12 months have elapsed from the later of the date the Canadian Venture Exchange Inc. approved the acquisition of the property or the date the property for which the security is being issued was transferred to the issuer;

(c) if the trade is in a security acquied by the seller under section 128(e) of the Rules, 12 months have elapsed from the date on which payment of the debt became due;

(d) the trade is not a control distribution;

(e) no unusual effort is made to prepare the market or to create a demand for the securities that are the subject of the trade;

(f) no extraordinary commission or consideration is paid to a person or company in respect of the trade; and

(g) if the selling securityholder is an insider or officer of the issuer, the selling securityholder has no reasonable grounds to believe that the issuer is in default of the Act or Rules.

2. Where an exchange issuer before November 1, 2001 complied with: 

(a) BCI 45-506 In the Matter of the System for Shorter Hold Periods with an Annual Information Form; and
 
(b) Local Policy Statement 3-27 System for Shorter Hold Periods with an Annual Information Form and Exemption for Certain Distributions Outside of British Columbia;

the 12 month period referred to in paragraph 1(a), (b) or (c) of this Instrument is reduced to 4 months.

3. This instrument will expire on November 30, 2002.