Receipt for Net Proceeds (IPO, Corporation to Agents/Underwriters)

Summary

This precedent is a receipt acknowledging the receipt of the net proceeds from the Corporation to the Agents/Underwriters. This precedent contains practical guidance and drafting notes. Under Canadian securities laws, issuers are prohibited from trading securities in a way that would constitute a "distribution" unless they have filed a prospectus and received a receipt from the securities regulator(s) in the jurisdiction(s) where it was filed or an exemption from the prospectus requirement is used. The process by which a company offers and sells its securities, usually common shares, to the public for the first time by prospectus is typically referred to as an IPO. An IPO is a relatively time-consuming and complex process that requires the cooperation and coordination of the issuer, the underwriters, their counsel, and other parties such as auditors. For more information on initial public offerings, see practice note: IPO Process and resource kit: Initial Public Offerings Resource Kit....