Shelf Agreement

by on Oct.07, 2021, under Uncategorized

Shelf recording is mainly used for the sale of new securities by the issuer (primary offers), although it can be used for the resale of outstanding securities (secondary offers) or a combination of both. The main advantages of a shelf registration declaration are timing and security. An effective inventory statement allows an issuer to quickly access capital markets when necessary or when market conditions are optimal. As already mentioned, the validity of an issuer`s registration statement does not require SEC verification regarding subsequent takedowns. Due to their deliberately limited time-limited nature, shelf offers are subject to much less rigorous scrutiny by these authorities than traditional public offerings. A shelf offering is also called shelf registration. It is officially known as SEC Rule 415. The $25 million shelf registration statement came into effect on June 24, 2020 and replaces the company`s previous $50 million shelf registration statement, which was scheduled to expire on July 5, 2020. A parallel preliminary base prospectus of $25 million was also filed on June 22, 2020 in each of the provinces of Canada, with the exception of Quebec (the “Canadian Jurisdictions”). In order to qualify securities for distribution in Canadian legal services, a Final Short Form Base Shelf Prospectus must be submitted to and receive a receipt from the relevant Canadian securities commissions.

Comments are closed.

Looking for something?

Use the form below to search the site:

Still not finding what you're looking for? Drop a comment on a post or contact us so we can take care of it!


A few highly recommended websites...