New Prospectus Exemptions In Canada For Foreign Distributions

SUMMARY

New Prospectus Exemptions in Canada for Foreign Distributions

On March 29, 2018, the Canadian Securities Administrators (CSA) announced a new prospectus exemption for resales of restricted securities outside of Canada will come into force on June 12, 2018. The new exemption should provide increased flexibility and reduce compliance costs for Canadian investors selling foreign securities outside of Canada.

In addition, on March 31, 2018, four new exemptions that allow issuers (and in some cases selling security holders) to sell securities outside of Canada without a prospectus came into force in Ontario. The new exemptions are expected to provide greater certainty to issuers and investors in Ontario when selling (or reselling) securities outside of Ontario.