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October 2019 Advocacy Newsletter
Summary:
Reporting issuers must file a BAR subsequent to an acquisition if the transaction constitutes a “significant acquisition” that is determined by one of the specified tests; an asset test, an investment test or a profit or loss test. If the result from any one of these tests exceeds 20%, then a report is required (the threshold is 100% for a venture issuer). The report is intended to provide investors with historical financial information on a significant purchase. If it is not a venture issuer, the reporting issuer must also prepare pro forma financial statements. The proposed changes aim to reduce some of the burden relating to the preparation of these reports. The amendments would change the determination of significance for non-venture issuers such that an acquisition would only be a significant acquisition if at least two of the tests are triggered, and also increase the threshold to 30%.