CSA Pilots Semi-Annual Financial Reporting

Reducing reporting burden for eligible venture issuers

The Canadian Securities Administrators (CSA) have proposed a multi-year pilot initiative to allow eligible venture issuers to voluntarily adopt semi-annual financial reporting. To be eligible, among other criteria, a venture issuer must have annual revenue of no more than C$10 million.

Who Is Eligible: Junior mining companies are expected to constitute the majority of eligible venture issuers. According to estimates by the Ontario Securities Commission (OSC), approximately 1,461 reporting issuers in Ontario have annual revenues of less than C$10 million, which represents approximately 89% of all venture issuers reporting in the province. The majority of these issuers are in the materials sector (i.e., chemicals, packaging, metals, mining and paper products), with issuers in the sector having an average market capitalization of just over C$54 million.