The applicants, a TSX-listed issuer and a foreign resident purchaser and manager, applied to the Ontario Securities Commission for exemptive relief from certain prospectus disclosure, dealer registration, and prospectus delivery requirements.
The relief was sought in connection with an 'equity line of credit' facility, under which the purchaser would buy newly issued securities of the issuer at a discount and resell them in the secondary market.
The Commission granted the requested exemptions, subject to conditions including a 9.9% cap on the number of shares distributed under the facility in any 12-month period, restrictions on the purchaser's activities, and timely disclosure of each drawdown.