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ARTICLE · 15 SEPTEMBER 2020

Business Acquisition Reporting Relaxed For Non-Venture Reporting Issuers

Effective November 18, 2020, the rules relating to filing a business acquisition report (BAR) are being relaxed for reporting issuers that are not venture issuers.

CanadaCorporate/Commercial Law

Effective November 18, 2020, the rules relating to filing a business acquisition report (BAR) are being relaxed for reporting issuers that are not venture issuers. This includes TSX-listed issuers. The Canadian Securities Administrators (CSA) are increasing the significance thresholds for the tests that trigger the requirement to file a BAR by such reporting issuers and are also increasing the number of tests that must be met prior to triggering the requirement to file a BAR.  

BARs are required to be filed when a reporting issuer makes a "significant" acquisition. BARs have attracted criticism as being duplicative with other disclosure and burdensome, and it is anticipated the amendments will be well received. Currently the BAR requirements for reporting issuers (non-venture) are based on three significance tests: the asset test, the investment test and the profit or loss test. The current rules only require one of the three tests to be met before the requirement

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