The Ontario Securities Commission OSC Bulletin August 6, 2020 Volume 43, Issue 32 (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 42711448 The OSC Bulletin is published weekly by Thomson Reuters Canada, under the authority of the Ontario Securities Commission. 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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 ................................................... 6179 Chapter 5 Rules and Policies .................................. (nil) 1.1 Notices .......................................................... 6179 1.1.1 CSA Notice of Amendments to National Chapter 6 Request for Comments ........................ 6273 Instrument 45-106 Prospectus Exemptions 6.1.1 Proposed Amendments to OSC Rule 48-501 and National Instrument 31-103 Registration Trading During Distributions, Formal Bids Requirements, Exemptions and Ongoing and Share Exchange Transactions and Registrant Obligations and Changes to Proposed Changes to Companion Policy Companion Policy 45-106CP Prospectus 48-501CP – Request for Comments .............. 6273 Exemptions and Companion Policy 31-103CP Registration Requirements, Exemptions and Chapter 7 Insider Reporting .................................. 6291 Ongoing Registrant Obligations relating to Syndicated Mortgages .................................... 6179 Chapter 9 Legislation ............................................... (nil) 1.1.2 CSA Staff Notice 11-342 Notice of Local Amendments and Changes Chapter 11 IPOs, New Issues and Secondary in Certain Jurisdictions ................................... 6218 Financings ............................................. 6343 1.1.3 OSC Notice of General Order – Ontario Instrument 45-506 Start-Up Crowdfunding Chapter 12 Registrations ......................................... 6351 Registration and Prospectus Exemptions 12.1.1 Registrants ..................................................... 6351 (Interim Class Order) ...................................... 6227 1.2 Notices of Hearing ......................................... (nil) Chapter 13 SROs, Marketplaces, 1.3 Notices of Hearing with Related Clearing Agencies and Statements of Allegations ............................ (nil) Trade Repositories ................................. (nil) 1.4 Notices from the Office 13.1 SROs ............................................................... (nil) of the Secretary ............................................ 6229 13.2 Marketplaces .................................................. (nil) 1.4.1 Coinsquare Ltd. et al. ..................................... 6229 13.3 Clearing Agencies ......................................... (nil) 1.4.2 Majd Kitmitto et al. .......................................... 6229 13.4 Trade Repositories ........................................ (nil) 1.5 Notices from the Office of the Secretary with Related Chapter 25 Other Information ................................... (nil) Statements of Allegations ............................ (nil) Index ................................................................ 6353 Chapter 2 Decisions, Orders and Rulings ............ 6231 2.1 Decisions ...................................................... 6231 2.1.1 Auxly Cannabis Group Inc. and AltaCorp Capital Inc. ..................................................... 6231 2.2 Orders............................................................ 6237 2.2.1 Ontario Instrument 45-506 Start-Up Crowdfunding Registration and Prospectus Exemptions (Interim Class Order) .................. 6237 2.2.2 Majd Kitmitto et al. .......................................... 6266 2.3 Orders with Related Settlement Agreements .................................................... (nil) 2.4 Rulings ........................................................... (nil) Chapter 3 Reasons: Decisions, Orders and Rulings ................................................... 6267 3.1 OSC Decisions .............................................. 6267 3.1.1 Coinsquare Ltd. et al. – ss. 127, 127.1 ........... 6267 3.2 Director’s Decisions ...................................... (nil) Chapter 4 Cease Trading Orders ........................... 6271 4.1.1 Temporary, Permanent & Rescinding Issuer Cease Trading Orders ......................... 6271 4.2.1 Temporary, Permanent & Rescinding Management Cease Trading Orders .............. 6271 4.2.2 Outstanding Management & Insider Cease Trading Orders .................................... 6271 August 6, 2020 (2020), 43 OSCB Chapter 1 Notices 1.1 Notices 1.1.1 CSA Notice of Amendments to National Instrument 45-106 Prospectus Exemptions and National Instrument 31- 103 Registration Requirements, Exemptions and Ongoing Registrant Obligations and Changes to Companion Policy 45-106CP Prospectus Exemptions and Companion Policy 31-103CP Registration Requirements, Exemptions and Ongoing Registrant Obligations relating to Syndicated Mortgages CSA Notice of Amendments to National Instrument 45-106 Prospectus Exemptions and National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations and Changes to Companion Policy 45-106CP Prospectus Exemptions and Companion Policy 31-103CP Registration Requirements, Exemptions and Ongoing Registrant Obligations relating to Syndicated Mortgages August 6, 2020 Introduction The Canadian Securities Administrators (the CSA or we) are making the following amendments and changes relating to syndicated mortgages (collectively, the Amendments): • National Instrument 45-106 Prospectus Exemptions (NI 45-106) and National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103); and • Companion Policy 45-106CP Prospectus Exemptions (45-106CP) and Companion Policy 31-103CP Registration Requirements, Exemptions and Ongoing Registrant Obligations The Amendments were originally published for comment on March 8, 2018 (the 2018 Proposal) and revised proposals were published for a second comment period on March 15, 2019 (the 2019 Proposal). Substance and Purpose The Amendments include changes to certain prospectus and registration exemptions available for the distribution of syndicated mortgages, including the following: • removing the prospectus and registration exemptions under sections 2.36 of NI 45-106 and 8.12 of NI 31-103 (the Mortgage Exemptions) respectively for the distribution of syndicated mortgages in Newfoundland and Labrador, the Northwest Territories, Nova Scotia, Nunavut, Ontario, Prince Edward Island and Yukon;1 • introducing additional requirements to the offering memorandum prospectus exemption under section 2.9 of NI 45-106 (the OM Exemption) that will apply when the exemption is used to distribute syndicated mortgages; and • amending the private issuer prospectus exemption under section 2.4 of NI 45-106 (the Private Issuer Exemption) so that it is not available for the distribution of syndicated mortgages. 1 Syndicated mortgages are already excluded from the Mortgage Exemptions in Alberta, British Columbia, Manitoba, New Brunswick, Québec and Saskatchewan. August 6, 2020 (2020), 43 OSCB 6179 Notices Summary