In the article, “Are You Calculating Your Post-Conversion Beneficial Ownership Correctly?,” we noted that “since changes were implemented in 2010, many people do not realize that they may have reached the 10% threshold or even 20% (control person) based on post-conversion beneficial ownership which requires public filings (i.e. Early Warning Report).”

Are you a 10% Shareholder?  If so, what are you required to do?

If you have reached 10% ownership of a public company you are required to:

  • Immediately file a press release;
  • File an Early Warning Report within 2 business days following the purchase(s) advising the public and investment community that you have reached the 10% threshold;
  • Stop making any further purchases in the Issuer until the necessary information has been filed and the press release has been issued.

 You may resume purchasing at the end of the business day after the report has been filed.  Appendix E and Appendix F of NI 62-103 indicate the information that is required in the Early Warning Report and in the press release.

What do you do next?

Now that you have filed your initial Early Warning Report and have issued your press release, you need to keep track of your purchases from this point forward.  Track your purchases from the day that your Early Warning Report was filed.  You will be required to file again once your position has increased by an additional 2% or more.

Do you need Help?

We know this can be a daunting task!  If you need help tracking your purchases or drafting your documents, contact us, we will be happy to help!

To download an Excel spreadsheet that will help you calculate your holdings for a particular stock as you make additional purchases, click here.

Additional Information & Definitions:

For additional information and definitions for the applicable Policies, courtesy of the British Columbia Securities Commission, please see:

 

Disclaimer:
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.
image_pdfimage_print