CNSX issues Great news with US SEC
Canadian National Stock Exchange announces Designation by U.S. Securities and Exchange Commission
TORONTO – March 8, 2010 – CNSX Markets Inc. (CNSX Markets) today announced that CNSX Markets has received Designated Offshore Securities Market status from the United States Securities and Exchange Commission (SEC) within the meaning of Rule 902(b) of Regulation S under the Securities Act of 1933 (the “1933 Act”). The designation includes both the Canadian National Stock Exchange (CNSX) and Pure Trading.
Regulation S provides safe harbours for offers and sales of securities by issuers and others in offshore transactions and to non-US persons without registration under the 1933 Act. Accordingly, re-sales of securities on CNSX or Pure Trading by persons who are not issuers, distributers or their affiliates qualify as offshore transactions under the 1933 Act. Restricted securities under the 1933 Act may now generally be resold on CNSX or Pure Trading without the seller having to determine whether the buyer is in the United States or is a US person, as would otherwise be the case.
Ian Bandeen, CEO and Vice Chairman of CNSX Markets stated “We welcome the SEC's decision to award us designated offshore securities market status. CNSX Markets was assessed by the SEC based on our structure, organization, regulatory framework, and reporting standards. This recognition acknowledges the caliber of CNSX and Pure Trading and our regulatory framework. It also provides more flexibility to market participants and investors seeking to buy and sell Reg S restricted securities.”
In December 2008, The Honourable Jim Flaherty, P.C., M.P., Minister of Finance added CNSX to the list of Designated Stock Exchanges under section 262 of the Income Tax Act (Canada), R.S.C. 1985 ch. 1 (5th Supp.), allowing securities listed on CNSX to automatically be eligible for Registered Retirement Savings Plans and Tax-Free Savings Accounts.
