It has now been a year since the Canadian Securities Administrators (CSA) unveiled the listed issuer financing exemption (LIFE) as part of Part 5A of National Instrument 45-106 Prospectus Exemptions. The main aim of the LIFE Exemption, as stated, was to ease the financial burden for issuers aiming to raise small amounts of capital through public markets.
Over the course of the past year, there has been significant utilization of the LIFE Exemption. One of the key reasons for its popularity is the fact that it allows issuers to present prospectus-exempt, freely tradeable securities to investors. This has substantially reduced the hassle and time involved with the conventional process of trading securities.
However, as we delve further into the specifics and the impact of the LIFE Exemption a year after its inception, there are a few key factors that need to be borne in mind.
Find out more in the full article here.