In previous posts, we have tried to help clarify the early warning reporting requirements as it relates to your post-conversion beneficial ownership.  Now, let us give you the highlights of what regulators have recently proposed (2013) for amendment to the early warning requirements.

If the regulators adopt these amendments, this is what it means for you:

  • Subsequent early warning reports require that you update your report when your ownership increases by an additional 2% or a material change since your last report. The proposed amendments would require reporting when your ownership increases or decreases by 2%.
  • The required content of the early warning report can be seen in Appendix E of 62-103.  The proposed amendments would increase the required disclosure, especially with regard to the purchaser’s intent, in Form 62-103F1 shown in proposed amendments to 62-103.
  • When you reach the 10% threshold, you must promptly issue a press release and within 2 business days, file an early warning report.  If the proposed amendments are adopted, the press release would have to be issued and filed no later than the opening of trading on the next business day.  Purchasing additional securities must cease from the time you reached the 5% threshold and would expire one business day after you have filed the early warning report.

The above amendments represent our summary of notable changes to the early warning reporting requirements as it relates to the individual investor.  To read all proposed amendments published by the BC Securities Commission here.

This information is provided as an information service only and is not intended to substitute for competent professional advice. No action should be initiated without consulting a professional advisor.