The Canadian Securities Administrators announced amendments to the Listed Issuer Financing Exemption, increasing the maximum capital that public companies can raise annually without a prospectus from $10 million to $50 million. The changes, formalized through coordinated blanket orders across Canadian jurisdictions, take effect May 15, 2025.
Listed issuers may now raise the greater between $25 million or 20% of the aggregate market value of the listed securities to a maximum of $50 million in a 12-month period. Issuers must ensure distributions do not increase outstanding listed equity securities by more than 50% during the same period.
US regulation A+ permits raises up to $75 million over 12 months under Tier 2, a model some Canadian firms have utilized via dual listings.
The exemption, introduced in November 2022, allows reporting issuers listed on recognized exchanges to bypass prospectus filings, reducing costs and administrative hurdles. Since its adoption, 270 issuers have raised over $1 billion using LIFE offerings.
CSA Chair Stan Magidson stated the amendments aim to enhance the competitiveness of Canada’s capital markets. “We are committed to a Canadian regulatory environment that is responsive to the changing needs of market participants, while upholding strong investor protections,” he said. The CSA cited feedback from market participants who identified the prior $10 million limit as restrictive.
The relief will be enacted via a blanket order, though some jurisdictions may impose expiry dates based on local term limits. The CSA emphasized that LIFE remains targeted at issuers in good standing with up-to-date financial disclosures.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
