(1) Subject to subsection (2), the financial statements of an issuer required under this Item to be included in a prospectus must include
(a) the financial statements of any predecessor entity that formed, or will form, the basis of the business of the issuer, even though the predecessor entity is, or may have been, a different legal entity, if the issuer has not existed for three years,
(b) the financial statements of a business or businesses acquired by the issuer within three years before the date of the prospectus or proposed to be acquired, if a reasonable investor reading the prospectus would regard the primary business of the issuer to be the business or businesses acquired, or proposed to be acquired,by the issuer, and
(c) the restated combined financial statements of the issuer and any other entity with which the issuer completed a transaction within three years before the date of the prospectus or proposes to complete a transaction, if the issuer accounted for or will account for the transaction as a combination in which all of the combining entities or businesses ultimately are controlled by the same party or parties both before and after the combination, and that control is not temporary.
(2) An issuer is not required to include the financial statements for an acquisition to which paragraph (1)(a) or (b) applies if
(a) the issuer was a reporting issuer in any jurisdiction of Canada
(i) on the date of the acquisition, in the case of a completed acquisition; or
(ii) immediately before the filing of the prospectus, in the case of a proposed acquisition;
(b) the issuer’s principal asset before the acquisition is not cash, cash equivalents, or its exchange listing; and
(c) the issuer provides disclosure in respect of the proposed or completed acquisition in accordance with Item 35.