OSC Bulletin
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The Ontario Securities Commission OSC Bulletin August 20, 2020 Volume 43, Issue 34 (2020), 43 OSCB The Ontario Securities Commission administers the Securities Act of Ontario (R.S.O. 1990, c. S.5) and the Commodity Futures Act of Ontario (R.S.O. 1990, c. C.20) The Ontario Securities Commission Published under the authority of the Commission by: Cadillac Fairview Tower Thomson Reuters 22nd Floor, Box 55 One Corporate Plaza 20 Queen Street West 2075 Kennedy Road Toronto, Ontario Toronto, Ontario M5H 3S8 M1T 3V4 416-593-8314 or Toll Free 1-877-785-1555 416-609-3800 or 1-800-387-5164 Contact Centre – Inquiries, Complaints: Fax: 416-593-8122 TTY: 1-866-827-1295 Office of the Secretary: Fax: 416-593-2318 42711450 The OSC Bulletin is published weekly by Thomson Reuters Canada, under the authority of the Ontario Securities Commission. Thomson Reuters Canada offers every issue of the Bulletin, from 1994 onwards, fully searchable on SecuritiesSource™, Canada’s pre-eminent web-based securities resource. SecuritiesSource™ also features comprehensive securities legislation, expert analysis, precedents and a weekly Newsletter. For more information on SecuritiesSource™, as well as ordering information, please go to: http://www.westlawecarswell.com/SecuritiesSource/News/default.htm or call Thomson Reuters Canada Customer Support at 1-416-609-3800 (Toronto & International) or 1-800-387-5164 (Toll Free Canada & U.S.). Claims from bona fide subscribers for missing issues will be honoured by Thomson Reuters Canada up to one month from publication date. Space is available in the Ontario Securities Commission Bulletin for advertisements. The publisher will accept advertising aimed at the securities industry or financial community in Canada. Advertisements are limited to tombstone announcements and professional business card announcements by members of, and suppliers to, the financial services industry. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior written permission of the publisher. The publisher is not engaged in rendering legal, accounting or other professional advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Printed in the United States by Thomson Reuters. © Copyright 2020 Ontario Securities Commission ISSN 0226-9325 Except Chapter 7 ©CDS INC. One Corporate Plaza Customer Support 2075 Kennedy Road 1-416-609-3800 (Toronto & International) Toronto, Ontario 1-800-387-5164 (Toll Free Canada & U.S.) M1T 3V4 Fax 1-416-298-5082 (Toronto) Fax 1-877-750-9041 (Toll Free Canada Only) Email [email protected] Table of Contents Chapter 1 Notices ................................................... 6491 Chapter 5 Rules and Policies ................................ 6583 1.1 Notices .......................................................... 6491 5.1.1 Start-up Crowdfunding Guide for 1.1.1 CSA Notice of Amendments to National Businesses .................................................... 6583 Instrument 51-102 Continuous Disclosure 5.1.2 Start-up Crowdfunding Guide for Funding Obligations and Changes to Certain Policies Portals ............................................................ 6593 Related to the Business Acquisition Report 5.1.3 Start-up Crowdfunding Guide for Investors .... 6600 Requirements ................................................. 6491 1.1.2 Joint CSA/IIROC Staff Notice 23-327 – Update Chapter 6 Request for Comments .......................... (nil) on Internalization within the Canadian Equity Market ............................................................ 6504 Chapter 7 Insider Reporting .................................. 6607 1.2 Notices of Hearing ........................................ 6533 1.2.1 ESW Capital, LLC and Optiva Inc. – s. 104 .... 6533 Chapter 9 Legislation ............................................... (nil) 1.3 Notices of Hearing with Related Statements of Allegations ............................ (nil) Chapter 11 IPOs, New Issues and Secondary 1.4 Notices from the Office Financings ............................................. 6679 of the Secretary ............................................ 6534 1.4.1 ESW Capital, LLC and Optiva Inc. ................. 6534 Chapter 12 Registrations ......................................... 6687 1.4.2 First Global Data Ltd. et al. ............................. 6534 12.1.1 Registrants ..................................................... 6687 1.4.3 Joseph Debus ................................................ 6535 1.4.4 Canada Cannabis Corporation et al. .............. 6535 Chapter 13 SROs, Marketplaces, 1.5 Notices from the Office Clearing Agencies and of the Secretary with Related Trade Repositories ............................... 6689 Statements of Allegations ............................ (nil) 13.1 SROs ............................................................... (nil) 13.2 Marketplaces ................................................ 6689 Chapter 2 Decisions, Orders and Rulings ............ 6537 13.2.1 Canadian Securities Exchange – Amendments 2.1 Decisions ...................................................... 6537 to Trading System Functionality & Features – 2.1.1 Picton Mahoney Asset Management et al. ..... 6537 Notice and Request for Comment .................. 6689 2.1.2 Georgeson Shareholder Communications 13.3 Clearing Agencies ....................................... 6692 Canada Inc. .................................................... 6543 13.3.1 Canadian Derivatives Clearing Corporation 2.1.3 Wealthsimple Digital Assets Inc. .................... 6548 (CDCC) – Proposed Amendments to the 2.1.4 Mercer Global Investments Canada Limited ... 6562 Rules of CDCC with Respect to the CGZ 2.1.5 Ninepoint Partners LP .................................... 6565 Futures Contract – OSC Staff Notice of 2.2 Orders............................................................ 6568 Request for Comment .................................... 6692 2.2.1 Alchemist Mining Incorporated ....................... 6568 13.4 Trade Repositories ........................................ (nil) 2.2.2 First Global Data Ltd. et al. ............................. 6569 2.2.3 Horizons ETFs Management (Canada) Inc. ... 6570 Chapter 25 Other Information ................................... (nil) 2.2.4 Lendified Holdings Inc. ................................... 6572 2.3 Orders with Related Settlement Index ................................................................ 6693 Agreements .................................................... (nil) 2.4 Rulings ........................................................... (nil) Chapter 3 Reasons: Decisions, Orders and Rulings ................................................... 6577 3.1 OSC Decisions .............................................. 6577 3.1.1 Joseph Debus ................................................ 6577 3.2 Director’s Decisions ...................................... (nil) Chapter 4 Cease Trading Orders ........................... 6581 4.1.1 Temporary, Permanent & Rescinding Issuer Cease Trading Orders ......................... 6581 4.2.1 Temporary, Permanent & Rescinding Management Cease Trading Orders .............. 6581 4.2.2 Outstanding Management & Insider Cease Trading Orders .................................... 6581 August 20, 2020 (2020), 43 OSCB Chapter 1 Notices 1.1 Notices 1.1.1 CSA Notice of Amendments to National Instrument 51-102 Continuous Disclosure Obligations and Changes to Certain Policies Related to the Business Acquisition Report Requirements CSA Notice of Amendments to National Instrument 51-102 Continuous Disclosure Obligations and Changes to Certain Policies Related to the Business Acquisition Report Requirements August 20th, 2020 Introduction The Canadian Securities Administrators (CSA or we) are making amendments and changes to: • National Instrument 51-102 Continuous Disclosure Obligations (NI 51-102); • Companion Policy 51-102CP Continuous Disclosure Obligations (Companion Policy 51-102CP); • Companion Policy to National Instrument 41-101 General Prospectus Requirements (Companion Policy 41- 101CP); • Companion Policy to National Instrument 44-101 Short Form Prospectus Distributions (Companion Policy 44-101CP); (the Amendments). Provided all necessary ministerial approvals are obtained, the Amendments are effective on November 18, 2020. Details of the Amendments are outlined in Annexes C through F of this notice and will also be available on websites of CSA jurisdictions, including: www.bcsc.bc.ca www.albertasecurities.com www.fcaa.gov.sk.ca www.mbsecurities.ca www.osc.gov.on.ca www.lautorite.qc.ca nssc.novascotia.ca Substance and Purpose A reporting issuer that is not an investment fund is required to file a business acquisition report (BAR) after completing a significant acquisition. Part 8 of NI 51-102 sets out three significance tests: the asset test, the investment test and the profit or loss test. An acquisition of a business or related businesses is a significant acquisition that requires the filing of a BAR under Part 8 of NI 51-102: • for a reporting issuer that is not a venture issuer, if the result from any one of the three significance tests exceeds 20%; • for a venture issuer, if the result of either the asset test or investment test exceeds 100% (collectively, the BAR requirements). August 20, 2020 (2020), 43 OSCB 6491 Notices The Amendments •