New ATM Rules Come Into Force

August 28, 2020

Amendments to the “at-the-market” distribution (ATM) regime come into force on August 31, 2020 and will ease the ATM offering process for reporting issuers in Canada.

As previously discussed, a significant liberalization of the ATM regime was announced by the Canadian Securities Administrators (CSA) on June 4, 2020 and will come into force on August 31, 2020. By way of amendments to National Instrument 44-102 Shelf Distributions (NI 44-102), reporting issuers will no longer need to obtain exemptive relief from certain prospectus offering technical requirements (delivery obligations, withdrawal and rescission rights and forms of certificates) in order to undertake an ATM.

In addition, the size and liquidity restrictions typically imposed on ATM offerings will no longer apply. Issuers will still be required to periodically report the number and average price of the securities distributed under the ATM, along with the aggregate gross and net proceeds raised and commissions paid during the relevant period.

For further information about the amended ATM regime, please see our earlier post “ATM Update – CSA Clears ATMs for Lift Off” (June 5, 2020).

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