In mid-December, the Toronto Venture Exchange extended temporary relief from certain pricing requirements
related to private placements. Under the relief, issuers
conducting private placements may, under certain conditions, offer
shares at a price below the regulated minimum of $0.05 per share,
or convertible debentures below the regulated minimum of $0.10 per
share.
In order to rely on the relief, an issuer must, among other
things, demonstrate immediate or imminent financial hardship and
that it does not have the time or resources necessary to complete a
share consolidation prior to closing of the private placement,
disseminate a news release providing an itemized breakdown of the
use of proceeds and provide the TSX-V with a certificate in
prescribed form, signed by the CEO or CFO attesting to the
need for relief. At least 75% of the private placement must be
subscribed for by parties that are not related to the issuer,
and up to $50,000 of the gross proceeds raised
