TSX Introduces New Securityholder Approval Requirements For Takeover Bids And Mergers Involving Share Exchanges

The TSX announced on September 25, 2009 that it will amend its rules to eliminate an important exemption from its securityholder approval requirements generally applicable to acquisitions involving the issuance by a listed issuer of securities from treasury. The TSX requires that listed issuers obtain securityholder approval for the issuance of securities as full or partial consideration for an acquisition where the number of securities to be issued exceeds 25% of the issued and outstanding securities of the listed issuer. An exemption has been available to date, however, where the listed issuer is acquiring the securities of a public company having at least 50 shareholders (excluding insiders).