Released on June 27, 2003
Changes to Saskatchewan securities regulations to provide exemptions from some requirements of securities legislation will make it easier to raise capital in Saskatchewan while continuing to protect investors."Our government is strongly supportive of the exemptions," Justice Minister Eric Cline said. "The new rules will be a significant benefit to small and medium-sized businesses seeking financing and could, potentially, create thousands of jobs."
Under the new rules, companies will be able to raise capital without the expense of preparing a prospectus and with access to a larger group of potential investors.
Cline said there are situations where investors either do not need the information set out in a prospectus or are able to obtain that information themselves through direct discussion with a company. "For instance, the exemption could apply to distributions to sophisticated investors, called accredited investors, or to family members, close personal friends and close business associates of a company's directors or senior officers," Cline said.
The new rules also permit the use of an offering memorandum in place of a prospectus. The offering memorandum does not contain the broad, detailed disclosure found in a prospectus and will be much less expensive for companies to produce.
The Saskatchewan Financial Services Commission adopted the rules in concert with most other securities regulators in Canada. Similar exemptions in Ontario have been credited with the creation of more than 35,000 jobs since 2002, and have added approximately $2.5 billion to Ontario's gross domestic product.
These changes came into effect June 16th, 2003.
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For More Information, Contact:
| Debi McEwen Justice Regina Phone: (306)787-6043 Email: dmcewen@justice.gov.sk.ca |