CSE Adopts Resale Restrictions on Distributions to Consultants

In an earlier blog post, we wrote about a proposal by the the Canadian Securities Exchange (the CSE) to amend its policies to introduce a requirement for resale restrictions on securities issued by CSE-listed companies pursuant to certain prospectus exemptions which would otherwise be free trading (the Amendments). You can read that blog post here.

On February 22, 2019, the Amendments were approved. As a result, a four-month hold period now applies on all shares issued by CSE-listed companies pursuant to the consultants exemption available in section 2.24 of National Instrument 45-106 Prospectus Exemptions. Resale restrictions must also be disclosed in a news release describing the share issuance.

DISCLAIMER: This post is intended to convey general information about legal issues and developments as of the date above. It does not constitute legal advice and must not be treated or relied on as such.