Process and Considerations: Bought Deals

Summary

This practice note discusses key requirements and considerations relating to bought deal offerings. A bought deal offering is a prospectus offering in which the underwriters agree to purchase a certain quantity of an issuer's securities at a specified price pursuant to the terms of a binding letter agreement prior to doing any marketing. This practice note covers bought deal eligibility requirements, including the notice of intent to qualify, the effect of bought deal offerings, TSX, TSXV, and the Canadian Investment Regulatory Organization ("CIRO") requirements, documentation and due diligence, local counsel and U.S.-specific requirements, financial statements required and settlement considerations.