Offering Memorandum Exemption Introduced In Ontario And Modified In Five Other Provinces

On October 29, 2015, securities regulators in six provinces announced their intention to adopt or modify a prospectus exemption available to issuers that prepare and deliver an offering memorandum (OM) to investors. Ontario intends to adopt an OM exemption, thereby becoming the last Canadian jurisdiction to do so. Each of Alberta, Saskatchewan, Québec, New Brunswick and Nova Scotia (together with Ontario, the Participating Provinces) intend to modify certain aspects of their existing OM exemption such that, in each case, it will be substantially harmonized with Ontario's OM exemption. The result is that issuers will be able to raise capital across Canada by way of an OM exemption, though certain aspects of the exemption will continue to vary by jurisdiction.