SIMA urges greater financing flexibility for Canadian public companies
TORONTO – October 21, 2026 – The Securities and Investment Management Association (SIMA) is encouraging Canada’s securities regulators to make the listed issuer financing exemption (LIFE) more flexible and easier to use, while preserving appropriate investor safeguards.
In response to the Canadian Securities Administrators’ (CSA) proposal on prospectus exemptions, SIMA’s submission supports greater financing capacity, streamlined requirements and clearer execution rules for public companies. It also recommends changes to remove barriers that can discourage issuers and dealers from using the exemption.
“Canada’s public companies need practical, efficient ways to access capital,” said Andy Mitchell, President and CEO of SIMA. “The CSA’s proposals are a positive step. Addressing remaining execution barriers while retaining investor safeguards can make LIFE a more effective financing option for smaller and mid-sized issuers.”
Recommendations
SIMA recommends that the CSA:
- increase the annual financing limit to $50 million, subject to a 50 per cent overall dilution limit
- permit pre-marketing through appropriate wall-crossing procedures to help dealers assess investor demand
- remove the dealer hold-period restriction when an offering is not fully sold at closing, or at minimum clarify when any hold period begins and ends
- allow offerings to launch before the LIFE offering document is filed, with filing as soon as practical after launch
- remove or shorten the 12-month reporting-history requirement for companies listed through a reverse takeover involving a capital pool company
SIMA notes that LIFE offerings often proceed as bought deals or overnight-marketed transactions where timely execution is critical.
Maintaining investor safeguards
SIMA supports retaining the 50 per cent dilution limit and a sufficiency-of-funds condition, while allowing more flexibility than the current 12-month requirement. It identifies six months as a possible alternative.
SIMA also supports including an expected offering-price range in the announcement news release when the final price is omitted from the offering document. It does not support adding convertible debentures to the exemption.
About SIMA
The Securities and Investment Management Association empowers Canada’s investment industry. It is the leading voice for the securities and investment management industry, which oversees approximately $4.5 trillion in assets for over 20 million investors and Canadian capital markets participants. SIMA members—including investment fund managers, investment and mutual fund dealers, capital markets participants, and professional service providers—are committed to creating a resilient, innovative investment sector that fuels long-term economic growth and creates opportunities for all Canadians.
For more information
Christine Harminc
Director, Communications and Public Affairs
charminc@sima-amvi.ca
416-309-2313
