Effective immediately, the Exchange is rescinding its Bulletins/Notices to Issuers dated December 11, 2007 and October 20, 2008 related to Deal Structure and Founder Shares Guidelines (collectively, the “Capital Structure Guidelines”). Rescinding the Capital Structure Guidelines will have the principal effect of removing the existing 15% limit on “Founder Shares” prescribed by the Capital Structure Guidelines in respect of any New Listing.
It should be noted that although the Exchange is rescinding the Capital Structure Guidelines, it is not rescinding or otherwise amending section 4.7 of Policy 2.1 – Initial Listing Requirements. The Exchange will retain its general discretion under section 4.7 of Policy 2.1 to refuse a listing on the basis that an Issuer’s capital structure is excessively dilutive or otherwise imbalanced. The Exchange will apply this discretion on a case by case basis with a view to the facts specific to each listing. If, over time, the Exchange establishes new general guidelines for the exercise of this discretion, the Exchange will consider publishing a new Bulletin/Notice to Issuers setting out applicable guidance in respect of any such general guidelines.
such general guidelines.