The multi-jurisdictional disclosure system ("MJDS") between Canada and the USA is a reciprocal initiative adopted by the SEC and the Canadian Securities Administrators. It was designed to facilitate cross-border public offerings of securities by allowing issuers to meet their disclosure obligations in both Canada and the United States through complying with the issuer’s home country disclosure standards. As a result, being a MJDS company permits the review of say, a technical report, solely by the securities regulator in the issuer’s home country.
To be eligible for MJDS, a Canadian or USA company must be incorporated in:
Canada – for Canadian companies to rely on MJDS for their reporting in the USA, or
The USA – for USA companies to rely on MJDS for their reporting in Canada.
In either case, the company must be a “seasoned” issuer (been a reporting issuer for at least 12 to 36 months) and listed on a recognized stock exchange for a minimum of12 months while currently in compliance with all of its reporting and listing obligations. Finally, such a company must have a public float (market cap) of at least $75 million to qualify as a MJDS company.
If you or your company is unsure whether you qualify for taking the path of an MJDS company for satisfying the S-K 1300 regulations, contact our Mining Plus here. We have studied this status and can advise you based on the particular facts of your situation.
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