Relief from requirement to file notice of intention to file a short form prospectus within stipulated time before filing a prospectus.
Canadian Resources Income Trust is a TSX-listed mutual fund that is not in continuous distribution. CRIT was in the process of seeking to extend its life, the purpose of which it argued was to enable CRIT to have the opportunity to increase its size through additional offerings which, if successful, will benefit unitholders through trading liquidity of the units and a decreased management expense ratio. CRIT filed its notice of intention to file a short form prospectus on February 20, 2015. As a result, it was unable to file a short form prospectus until March 6, 2015, 10 business days from the date it filed its notice.
CRIT believed that there was a favourable market window for an offering of units but, given the uncertainly with respect to global equity markets generally and the natural resource markets in particular, it was concerned the window might not last long enough for it to file a short form prospectus within the required timeframe. CRIT sought to file a preliminary short form prospectus on or about February 25, 2015, and commence the marketing of a public offering as soon as possible thereafter.
In connection with its application for exemptive relief, CRIT represented that it was not planning a bought deal and that long form prospectus review timelines were acceptable. The regulator granted relief to CRIT and CRIT filed a prospectus on February 26, 2015.