As part of this proposed national instrument, I note that a resulting amendment is being proposed to National Instrument 43 101 (“NI 43 101”) with respect to a filing of a short form prospectus.
As you are no doubt aware, the recent changes to NI 43 101 allowed for filing of the short form prospectus without a current report being filed so long as the report was subsequently filed within a specified period of time. The proposal under NI 51 103 to amend this provision only for venture issuers imposes a difficult situation in that venture issuers would be forced to comply with this provision whereas an issuer on the TSX would not.
One of the intentions of the amendment to NI 43 101 was to allow short form prospectuses, which are done often on a very short timeline, to take place in order that an issuer can take advantage of a financing which might not be available if it were forced to file a technical report where there had been a material change to a material property prior to a receipt being issued.
It seems that this proposed provision would take away that advantage to an issuer in the event that it were to file a short form prospectus and the proposed amendment to NI 43 101 would hardly be conducive to assisting issuers to raise capital. This is likely to result in lost opportunities for junior issuers to raise capital particularly when it is difficult enough to do in the current capital markets for such issues.
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