New Rules Introduced For Marketing Canadian Public Offerings

Introduction

Effective August 13, 2013, the Canadian Securities Administrators (CSA) will adopt new rules on permissible pre-marketing and marketing activities in connection with the public offering of securities in Canada (the Rules). The introduction of the Rules follows a public consultation by the CSA and increases the range of pre-marketing and marketing activities that dealers may undertake in connection with public offerings.

The Rules:

• distinguish between a new concept of "marketing materials" and standard term sheets and expressly provide for using such marketing materials and term sheets and holding road shows after the announcement of a bought deal, during the period between the preliminary prospectus and final prospectus (the waiting period) and following the filing and receipt of a final prospectus;