Improved
Access to Capital
Vancouver, B.C. Michael E. Johnson,
president and chief executive officer of the Vancouver Stock Exchange (VSE), is pleased to
announce the introduction of new policies and procedures that will improve access to
capital for VSE-listed companies, effective immediately.
Some of the highlights of the new regulatory innovation
initiatives include:
Small Financing Exemption (to be implemented this spring)
Raise up to $1 million in any 12-month period from retail investors through this new
offering document
Pre-Listing Advisory Committee (PLAC) review eliminated
Faster filing times for new listings, reverse takeovers (RTOs) and changes of business
(COBs)
Revised halts for RTOs and COBs
Making it easier to price financings and attract investors
One-year sponsorship eliminated
Eliminate ongoing sponsorship fees
Higher Review Thresholds
Regulatory acceptance in one day in most cases for certain small transactions
Private placements streamlined
Approval processes speeded up through new placee registration system, elimination of
questionnaires and reserved pricing for non-brokered deals
Geological reports eliminated
For small acquisitions, reducing time and expenses
In addressing markets competitiveness concerns, the VSE identified a number of policies
and procedures accumulated over the past 15 years that in total impeded effective access
to capital for listed companies.
Improving access to capital was also cited as a key benefit of the market restructuring
announced Monday by Canada’s four major stock exchanges, which will ensure a stronger
and globally competitive market system in Canada.
"By providing VSE-listed companies with these
regulatory innovation initiatives today, we add value to the VSE/ASE merger
proposition," Mike Johnson said.
"Our ability to provide these benefits to listed companies is a direct result of
our effectiveness as a regulator," Johnson explained. "As we’ve established
market integrity in our market, we have earned the confidence of the British Columbia
Securities Commission (BCSC)."
The BCSC’s confidence was evident in its July 1998 approval of the VSE Venture
Capital Pool (VCP) program and the transfer of IPO vetting responsibilities from the BCSC
to the VSE.
"These new regulatory innovation initiatives further enhance the competitiveness
of our market," Johnson said.
The VSE consulted with a number of groups throughout the process, including listed
company representatives, securities professionals, members and the
BCSC. In particular, the VSE acknowledges the support of an advisory group, comprised of
Brian Bayley of Quest Ventures Ltd., Don McFayden of Global Light Telecommunications and
James Heppell of Catalyst Corporate Finance Lawyers.
In addition to the highlights provided above, other policy and procedure changes
include:
Greater Flexibility and Speed
- Performance Shares for Acquisitions – permitted for non-resource companies
- Fairness Opinions – allowed in place of formal valuations in certain cases
- Approval in Principle System – broadened to venture companies
- Debt Restructuring Deals – more flexibility permitted to certain limits
- Pricing of Financings after Consolidations – allowed after 10 days
- Acquisition of Grassroots Property – up to 50 per cent of share capital can be
issued
Reduced Expenses
Use of Qualified Professionals – broadened for valuations
News Releases for Small Stock Options – eliminated
Consistency and Clarity
- Minor Transactions – redefined for non-resource companies
- Minimum Price of Rights Offerings – reduced to 15 cents
- Name Changes for Consolidations - amended
Regulatory innovation is a key initiative in the VSE’s ongoing effort to provide
more flexible procedures, reduce expenses and ensure faster processing times for listed
companies.
For more information, please visit the VSE website at www.vse.ca.
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