New amendments expand exemptions for issuers that want to distribute securities outside Canada
The Alberta Securities Commission (ASC) has published ASC Rule 72-501: Distributions to Purchasers Outside Alberta, which replaces an old rule of the same name enacted in 1998.
The new rule, which will take effect on August 31, expands upon exemptions available to Alberta issuers who seek to distribute securities to investors outside Canada. In addition, it provides a prospectus exemption for distributions that are made under the offering memorandum exemption within Canada.
The exemptions are granted based on compliance with the disclosure requirements of the purchaser’s jurisdiction. The rule also lays out prospectus exemptions for the resale of securities outside of Canada if the issuer is not a reporting issuer in any Canadian jurisdiction.
“This rule is a key part of the ASC's business plan to deliver intelligent regulation that supports a thriving capital market for Alberta issuers,” said Stan Magidson, chair and chief executive officer of the ASC. “It strikes the right balance between investor protection and facilitating cross-border offerings by avoiding the duplicative application of Alberta requirements, where the offering is subject to foreign securities laws.”
The full ASC Rule 72-501, as well as an accompanying companion policy and notice of repeal and replacement of the old 1998 rule, are available on the ASC website.
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