Another Visit To The ATM: CSA Finalizes Rules For At-the-Market Equity Programs

On June 4, 2020, the Canadian Securities Administrators (CSA) approved and published amendments to National Instrument 44-102 – Shelf Distributions (NI 44-102) to streamline the process for at-the-market (ATM) equity programs in Canada. The amendments come into force August 31, 2020, and serve as a welcome change for issuers looking to access capital efficiently on short notice, while managing volatile stock markets. For issuers navigating the ongoing COVID-19 pandemic, the adoption of an ATM program may be especially useful as a capital raising tool, with more conventional methods of financing currently unavailable.

What you need to know:

• The amendments remove many of the restrictions and regulatory burdens imposed on issuers launching an ATM program.  Most notably, they will: