ASC replaces old cross-border distribution rule for Alberta issuers

The Alberta Securities Commission has published a new rule to help facilitate Alberta offerings to investors outside the province.

The rule, referred to as ASC Rule 72-501 Distributions to Purchasers Outside Alberta, “repeals and replaces an existing rule of the same name, which was originally implemented in 1998,” says the regulator in a release.

It “significantly expands upon the exemptions available when an Alberta issuer seeks to distribute securities to investors outside of Canada,” the regulator adds, noting the rule includes “a prospectus exemption for distributions made under the offering memorandum exemption within Canada,” so long as issuers meet disclosure requirements of a purchaser’s jurisdiction.

The rule also offers prospectus exemptions for the resale of securities outside of Canada if the issuer is not a reporting issuer in any jurisdiction within Canada.

The change is part of ASC’s effort to “deliver intelligent regulation that supports a thriving capital market for Alberta issuers,” says Stan Magidson, chair and CEO of ASC, in the release. “It strikes the right balance between investor protection and facilitating cross-border offerings […].”

For more, read ASC Notice Repeal and Replacement of Alberta Securities Commission Rule 72-501 Distributions to Purchasers Outside Alberta and the new rule and accompanying companion policy.

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