Canadian securities regulators propose new exemption for distributions to existing security holders

Canadian securities regulators have proposed a new prospectus exemption that would allow issuers listed on the TSX Venture Exchange (TSX-V) to raise money by distributing securities to their existing security holders. It should be noted, however, that Ontario, which is home of Canada's largest and most important capital markets, was not among the jurisdictions to issue the proposal. Newfoundland also did not issue the proposal. Currently, if a TSX-V issuer wants to distribute securities to its existing security holders, who are not accredited investors, they must issue a prospectus or use a prospectus exemption that requires a disclosure document, such as an offering memorandum or a rights offering circular. Data shows that TSX-V issuers rarely use prospectus offerings or prospectus exemptions that require such disclosure documents, the Canadian Securities Administrators (CSA) said in a statement. "This means that retail security holders who want to make an additional investment