LIFE (Listed Issuer Financing Exemption) Instrument

Public companies can now execute private placements quickly.

On November 21, 2022, amendments were made to National Instrument 45-106 Prospectus Exemptions (NI 45-106) among other related changes by the Canadian Securities Administrators (CSA), introducing the listed issuer financing exemption (also known as the listed issuer exemption). This exemption permits reporting issuers with equity securities on a Canadian exchange to gather funds through the submission of a Form 45-106F19 Listed Issuer Financing Document (an offering document) and to issue freely tradeable equity securities, leveraging the issuer's ongoing disclosure record, within the framework provided by NI 45-106.

Subsequently, on June 1, 2023, the CSA released CSA Staff Notice 45-330 Frequently Asked Questions about the Listed Issuer Financing Exemption (CSA Notice 45-330), which served to clarify common inquiries concerning the listed issuer exemption. This document, CSA Notice 45-330, delves into several principal concerns and inquiries regarding the listed issuer exemption, drawing on the CSA's insights and the feedback received from stakeholders in the market over the first six months following the exemption's implementation.

New Prospectus Exemption - Summary of Practical Financing Use Cases

Updated: April 11, 2024