The Securities Commission has granted an extension to the lapse date for the prospectus of certain exchange-traded funds (ETFs) managed by Evermore Capital Inc. The original lapse date of February 11, 2023, has been extended to May 23, 2023. This decision allows the ETFs to incorporate the most current audited financial information into their renewed offering documents, thus avoiding the inefficiency and expense of a short-term review of interim unaudited financial statements.
The extension was granted under the Securities Act, R.S.O. 1990, c. S.5, as amended, specifically subsection 62(5). The decision was based on several key points:
1. Evermore Capital Inc. is the investment fund manager of the ETFs in question and is registered accordingly in various Canadian jurisdictions.
2. The ETFs are established under Ontario law and are reporting issuers in Canada.
3. There have been no material changes in the affairs of the ETFs since the date of their current prospectus.
4. The extension will not compromise the currency or accuracy of the information in the current prospectus or ETF facts documents.
5. Should any material changes occur, the prospectus and ETF facts documents will be amended as required by law.
The decision ensures that the ETFs can maintain continuous distribution of their securities without unnecessary administrative burden and cost, which ultimately benefits the funds’ securityholders. The outcome is consistent with the public interest and the regulatory framework designed to ensure accurate and current information is available to investors.