Orders facilitating access to capital by small and medium sized enterprises

The securities regulatory authorities in Yukon, Alberta, Saskatchewan, the Northwest Territories, Nunavut, Manitoba, Québec, Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland and Labrador, today each published a harmonized local blanket order that provides exemptions from certain requirements set out in Form 45-106F2 - Offering Memorandum for Non-Qualifying Issuers with Exemptions from Certain Financial Statement-Related Requirements in the Offering Memorandum Exemption to Facilitate Access to Capital by Small Businesses (pdf - 64 KB)This link will open in a new windowUpdated on December 20, 2012. These orders are intended to facilitate capital raising by early stage businesses and small and medium sized enterprises, while offering adequate protection to investors.

These orders provide an exemption from certain requirements regarding the financial statements to be included in offering memorandums of non-qualifying issuers wishing to benefit from this prospectus exemption under section 2.9 of Regulation 45-106 respecting Prospectus and Registration Exemptions. Issuers that satisfy the conditions in the orders will be exempt from the requirement to obtain an audit of their financial statements, and may have their financial statements prepared using generally accepted accounting principles (GAAP) for private enterprises rather than GAAP applicable to publicly accountable enterprises (IFRSs). No other requirement under the current offering memorandum prospectus exemption is modified by the orders.

Jurisdictions that have issued a blanket order are inviting comments on these orders and their terms until February 20, 2013. These orders come into effect today and expire on December 20, 2014.