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PDAC comments on all of the exempt market proposals from provincial securities regulators

PDAC is pleased to see that a number of jurisdictions have come out with proposals to reform the exempt market, and facilitate access to capital for pre-revenue companies like those in the mineral exploration industry.  The PDAC has long been an advocate for regulatory reforms that facilitate capital-raising while protecting investors. 

Particularly, PDAC supports initiatives that facilitate capital raising from a broader base of investors and harmonization of securities regulations across Canada. The various Prospectus Exemptions are a welcome initiative for our members who could benefit from these exemptions.  Filing prospectuses for junior mining companies is an expensive regulatory cost, particularly now that the industry is facing financing difficulties.  For small exploration companies without any revenues, every dollar spent on unnecessary compliance costs is a dollar that could be spent looking for the minerals and metals that make modern life possible.  

List of Submissions:

  1. OSC proposed Existing Security Holder Exemption - Proposal to introduce a new prospectus exemption that would allow non-investment fund issuers listed on certain Canadian stock exchanges to distribute securities to existing security holders in prescribed circumstances. Click here to see the submission.
  2. OSC proposed Family, Friends and Business Associates Exemption - Proposal to introduce a family, friends and business associates prospectus exemption similar to those in other CSA jurisdictions for non-investment fund issuers. Click here to see the submission.
  3. Offering Memorandum          
    • AB, SK, QC - Proposal to impose new annual caps on the amount that can be raised from an individual, to address marketing materials and to require annual financial statements. Click here to see the submission.
    • OSC - Proposal to introduce an offering memorandum prospectus exemption similar to the exemption available in certain other CSA jurisdictions (as proposed to be amended) for non-investment fund issuers. Click here to see the submission.
    • NB - Proposal to adopt an offering memorandum prospectus exemption on the same terms as in Ontario. Click here to see the submission.
  4. SK, MB, QC, NB, NS proposed Crowdfunding  and start-up crowdfunding - Proposal to introduce a new crowdfunding prospectus exemption for non-investment fund issuers and an associated registration regime for online funding portals.  Also, a proposed Start-Up Crowdfunding general and blanket orders to introduce new crowdfunding prospectus and registration exemptions for non-reporting issuers similar to Saskatchewan’s existing regime. Click here to see the submission.
  5. OSC proposed Crowdfunding Prospectus Exemption and Crowdfunding Portal Requirements. Click here to see the submission.
  6. BCSC introducing new crowdfunding prospectus and registration exemptions for non-reporting issuers similar to Saskatchewan’s existing regime.  Click here to see the submission.