In a recent announcement, the Canadian Securities Administrators (CSA) is adopting a new prospectus exemption for issuers listed on a Canadian stock exchange. The Listed Issuer Financing Exemption will provide issuers with a more efficient way to raise capital by reducing regulatory burden for small offerings while maintaining investor protection.
To be eligible for the Listed Issuer Financing Exemption, an issuer must be a reporting issuer in a Canadian jurisdiction for at least 12 months and file all continuous disclosure documents required by securities legislation. An eligible issuer will be required to file a short offering document. Under this new exemption, an issuer may raise up to the greater of $5 million or 10 per cent of its market capitalization, to a maximum of $10 million, annually. Securities issued under this exemption will be free trading.
Assuming all Ministerial approvals are obtained, the Listed Issuer Financing Exemption will come into force on November 21, 2022.