51-366 - Regulatory Concerns with Certain Asset or Business Acquisitions (National Notice)

51-366 - Regulatory Concerns with Certain Asset or Business Acquisitions (National Notice)

National Notice 51-366 Regulatory Concerns with Certain Asset or Business Acquisitions

Effective Date: July 3, 2025.

The Canadian Securities Administrators (CSA) have identified regulatory concerns with certain transactions, primarily taking place in venture markets, in which reporting issuers distribute a significant number of securities to acquire assets or businesses that appear to have little or no actual value or operating history at what appear to be significantly inflated prices.

The CSA are issuing this notice to illustrate the key regulatory and investor protection concerns we are seeing with these types of acquisitions, including concerns with misleading disclosure that could constitute market manipulation and to remind reporting issuers of the requirements that may apply.

51_366_regulatory_concerns_with_certain_asset_or_business_acquisitions_july_3_2025.pdf