The Ontario Securities Commission announced last week that it will be releasing proposals for new capital raising prospectus exemptions during the first quarter of 2014.
As we've discussed in previous posts, the OSC initiated a consultative process to consider potential new exemptions in December 2012. More recently, the OSC narrowed its consideration to four exemptions, namely: (i) a crowdfunding exemption; (ii) a family, friends and business associates exemption; (iii) a streamlined rights offering exemption and a possible exemption for distributions to a reporting issuer's existing security holders based on the issuer's continuous disclosure obligations; and (iv) an offering memorandum exemption.
According to the OSC's latest update, the regulator intends to publish proposals for comment in respect of the above mentioned four exemptions during the first quarter of 2014. Notably, the OSC also stated that it supports the current CSA proposal of a prospectus exemption for distributions to existing TSX-V issuer security holders and will consider comments in response to the CSA initiative in developing its proposed existing security holder exemption, with a goal of harmonizing the proposals.