The TSX Financial Hardship Exemption From Security Holder Approval

The TSX has clarified its rules regarding the circumstances in which a listed issuer can dilute its existing security holders by more than 25%, engage in transactions that materially affect control of the issuer, and / or engage in transactions with insiders of the issuer, in reliance on the financial hardship exemption from the security holder approval requirement under section 604(e) of the TSX Company Manual. The TSX staff notice is available here.

The staff notice discusses the level of information that the TSX will expect from issuers making applications to use the financial hardship exemption. Highlights of the information required include:

• the reasons for the issuer's serious financial difficulty;