The BC Securities Commission and its cross country counterparts have proposed a new prospectus exemption that would allow TSX-V issuers to distribute securities to their existing security holders, relying on their continuous disclosure record, thereby reducing costs for issuers & investors, and providing issuers with access to an additional source of financing.

Currently, if a TSX-V issuer wants to distribute securities to its existing security holders who are not accredited investors, they must use a prospectus or a prospectus exemption that requires a disclosure document, such as an offering memorandum or a rights offering circular.