Significant Changes Proposed To The Rules Governing Prospectus Offerings In Canada

The rules concerning the scope of permissible marketing activities for prospectus offerings in Canada may be significantly changed under proposals made by the Canadian Securities Administrators (the "CSA"). The proposed rule changes, if implemented, would meaningfully increase the range of marketing activities that could be undertaken by issuers in connection with prospectus offerings.

The current regulatory regime essentially prohibits marketing of an offering until a preliminary prospectus has been filed and receipted (subject to an exception for "bought deals"), and narrowly circumscribes the marketing activities that may be undertaken during the "waiting period" between the issuances of receipts for the preliminary and final prospectuses for an offering.