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ARTICLE · 12 OCTOBER 2015

Simplified Rights Offering Rules Announced By Canadian Securities Administrators

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The Canadian Securities Administrators (CSA) have announced that a revised rights offering regime for reporting issuers will come into force on December 8, 2015 (the New Rules).

CanadaCorporate/Commercial Law

The Canadian Securities Administrators (CSA) have announced that a revised rights offering regime for reporting issuers will come into force on December 8, 2015 (the New Rules). The New Rules will benefit reporting issuers seeking to raise capital from existing securityholders by:

  • shortening the timeframe for completion of a rights offering;
  • simplifying securities regulatory filings through a new reader-friendly Q&A format;
  • eliminating the need for regulatory approvals;
  • permitting the issuance of up to 100 percent of the outstanding number of securities (or principal amount, in the case of debt securities) in a 12-month period; and
  • reducing legal, printing and distribution costs of securities regulatory filings.

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