The Deal quotes Vancouver lawyer John Sabetti in an article on ATM restrictions (at-the-market).
John Sabetti, a partner at Fasken Martineau DuMoulin LLP, noted that Canadian regulators have relaxed some ATM restrictions, but a solvency threshold of sorts remains in place.
“Despite the elimination of these restrictions, even broader adoption of ATM programs in Canada may still be hindered by the Canadian Securities Administrators’ policy guidance to the effect that to clear a base shelf prospectus, which is necessary in order to implement an ATM program, an issuer will need to have sufficient cash resources to continue operations for a ‘reasonable period,’ generally considered to be 12 months.
“Accordingly, for issuers that do not have sources of sufficient cash and working capital for 12 months, they may not be in a position to implement an ATM program even though they have a need for such financing,” Sabetti to The Deal.
