Canadian Securities Administrators

Canadian Securities Administrators

November 27, 2014 11:00 ET

Canadian Securities Regulators Propose Significant Changes to the Rights Offering Regime

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 27, 2014) - The Canadian Securities Administrators (CSA) today published for comment proposed amendments that would create a streamlined prospectus exemption for rights offerings by reporting issuers.

"Although rights offerings can be one of the fairest ways for issuers to raise capital, in that they allow all existing investors to participate on a pro rata basis, they are seldom used because of the time and costs associated with them," said Bill Rice, Chair of the CSA and Chair and Chief Executive Officer of the Alberta Securities Commission. "The proposed exemption is designed to make rights offerings more attractive to reporting issuers by decreasing both the time and costs involved."

One of the key proposals is to remove the current regulatory review process prior to use of the rights offering circular. The CSA anticipates this will significantly decrease the amount of time it takes to conduct an offering. The CSA also proposes increased investor protection through the addition of civil liability for secondary market disclosure, and the introduction of a more user-friendly form of rights offering circular document.

The proposed amendments would also update other rights offering requirements and repeal the prospectus exemption for rights offerings by non-reporting issuers.

The CSA notice and proposed amendments are available on CSA members' websites. The comment period is open until February 25, 2015.

The CSA, the council of the securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

Contact Information

  • Richard Gilhooley
    British Columbia Securities Commission

    Mark Dickey
    Alberta Securities Commission

    Carolyn Shaw-Rimmington
    Ontario Securities Commission

    Sylvain Theberge
    Autorite des marches financiers

    Kevan Hannah
    Manitoba Securities Commission

    Andrew Nicholson
    Financial and Consumer Services
    Commission, New Brunswick

    Tanya Wiltshire
    Nova Scotia Securities Commission

    Janice Callbeck
    Office of the Superintendent of Securities

    Don Boyles
    Office of the Superintendent of Securities
    Newfoundland and Labrador

    Rhonda Horte
    Office of the Yukon Superintendent of

    Louis Arki
    Nunavut Securities Office

    Gary MacDougall
    Northwest Territories
    Securities Office

    Shannon McMillan
    Financial and Consumer Affairs
    Authority of Saskatchewan