The Nova Scotia Securities Commission, in conjunction with other members of the Canadian Securities Administrators, has adopted a new exemption that reduces the regulatory burden for companies listed on the Toronto Stock Exchange, TSX Venture Exchange and the Canadian Securities Exchange seeking to raise money from their existing security holders.
Before the adoption of this exemption, issuers faced regulatory barriers when attempting to raise capital from their current shareholders. The exemption reduces these barriers and allows existing investors to re-invest in the issuer without having to buy securities on the secondary market and pay brokerage fees.
“The positive response we received during the comment period allowed us to craft an exemption to meet the needs of industry participants in Nova Scotia,” said Sarah Bradley, chair and CEO of the Nova Scotia Securities Commission. “This new exemption is great news for Nova Scotia companies who are looking for a more cost effective way to grow their businesses.”
The exemption is limited to investors that have already made an investment in the issuer. Other investor protection measures include:
–-people are allowed to invest up to $15,000 in one 12 month period, unless they satisfy certain criteria
–contractual rights of action for misrepresentation will apply.
The Nova Scotia Securities Commission is the provincial government agency responsible for regulating trading in securities in the province. To view the order, visit http://nssc.gov.ns.ca/whats-new/.
Source: Release