The Securities Commission has granted an exemption to Embark Student Corp. (the Filer) on behalf of the Flex First Plan and the Family Single Student Education Savings Plan (the Terminating Plans), allowing an extension of the prospectus lapse date from May 8, 2024, to July 1, 2024. This decision is based on section 62(5) of the Securities Act (Ontario), which governs the time limits for the renewal of a prospectus.
The Filer, a registered scholarship plan dealer and investment fund manager, oversees the Terminating Plans, which are set to be wound up and have their assets transferred to the Embark Student Plan and Embark Select Conservative Plan by July 1, 2024. The extension is sought to preserve existing contribution schedules for current unitholders until the termination date, without the need to renew the prospectus and incur unnecessary costs.
The Commission’s decision is influenced by the fact that there have been no material changes in the Terminating Plans’ business, operations, or affairs since the current prospectus was issued, ensuring that the information remains current and accurate. The exemption is not expected to be prejudicial to the public interest, as any material changes would require an amendment to the prospectus under the relevant legislation.
The exemption is supported by the understanding that the Filer will continue to meet its disclosure obligations, and the decision is made in accordance with the test set out in the applicable securities legislation. The outcome allows the Filer to proceed without the typical prospectus renewal process, given the imminent termination of the plans.