ATM Update - CSA Clears ATMs For Lift Off

Significant liberalization of the "at-the-market" (ATM) regime was announced by the Canadian Securities Administrators (CSA) on June 4, 2020 and will become effective on August 31, 2020 by way of amendments (Amendments) to National Instrument 44-102 – Shelf Distributions (NI 44-102). The Amendments follow a proposal published in June 2019 as we previously discussed.

Background

Pursuant to the existing ATM provisions of NI 44-102, issuers are currently permitted to issue treasury securities through the facilities of a stock exchange at variable market prices, in varying amounts and on an as-needed basis, all at the discretion of the issuer and its agent. 

However, in order to do so, issuers invariably apply for and receive exemptive relief to address ill-suited prospectus delivery obligations, inapplicable withdrawal and rescission rights and inappropriate prospectus form and certification obligations.