The securities regulatory authorities ("SRA") in all
Canadian provinces, except Ontario and Newfoundland and Labrador
("Participating Jurisdictions") announced on March 13,
2014 that they have adopted the new existing security holder
prospectus exemption (the "Existing Security Holder
Exemption") Multilateral CSA Notice 45-313. This Existing
Security Holder Exemption enables issuers listed ("Listed
Issuers") on the TSX Venture Exchange ("TSX-V"),
Toronto Stock Exchange ("TSX") or the Canadian Securities
Exchange ("CSE") to raise funds by distributing
securities to their existing security holders without preparing an
offering document.
As noted in our prior bulletin, the Existing Security Holder
Exemption will be a tremendous benefit to Listed Issuers, their
non-accredited security holders ("Non-Accredited
Holders") and the Canadian capital markets in general. It is
anticipated that the Existing Security Holder Exemption will reduce
the cost of capital, provide
