Canadian Securities Regulators Propose to Revive and Streamline Rights Offerings

On November 27, 2014, the Canadian Securities Administrators (“CSA”) published for comment proposed amendments (the “Proposed Amendments”) to the rules governing rights offerings in Canada. Rights offerings are offerings of securities to shareholders of the issuer existing at the time of the offering. The CSA acknowledges that rights offerings can be one of the fairer ways for issuers to raise capital as they provide security holders with an opportunity to protect themselves from dilution. However, the CSA also recognizes that reporting issuers very seldom use prospectus-exempt rights offerings because of the associated time and cost.… ... View full post