At-The-Market Distributions Arrive In Canada

Reporting issuers will soon be able to implement at-the-market (ATM) distributions without obtaining regulatory relief.¹ Starting August 31, 2020, ATM distributions in Canada will no longer be subject to prescribed liquidity requirements or prescribed limits on aggregate distribution size or daily sales volume, and issuers will be required to report on sales only on a quarterly basis. The Canadian ATM regime will largely align with the U.S. ATM regime. We expect this will result in Canadian ATM distributions becoming more mainstream and will incentivize some cross-listed issuers to expand their U.S.-only ATM distributions into Canada. We welcome this positive development for Canadian capital markets. The new regime reduces the regulatory burden associated with ATM distributions by removing the need to apply for exemptive relief from the prospectus delivery and technical prospectus disclosure requirements. The new regime codifies the terms that were typically found in