Rights Offering In Canada About To Get Easier

On September 24, 2015, the Canadian Securities Administrators (CSA) announced the adoption of amendments to the prospectus-exempt rights offering regime (Rights Offering Exemption) to create a more streamlined process and allow reporting issuers — other than investment funds subject to National Instrument 81-102 Investment Funds — to issue up to 100 per cent of outstanding securities without the use of a prospectus and without prior review of the rights offering document by the CSA. The amendments under the new Rights Offering Exemption are intended to make the prospectus-exempt rights offering more attractive to reporting issuers by reducing the time and costs associated with rights offerings in Canada and by increasing the potential size of the rights offering that an issuer can undertake.