Document background
An Equity Distribution Agreement is a crucial document used when a company wishes to establish an ongoing arrangement for the distribution of its equity securities in the Canadian market. This agreement is particularly valuable for public companies seeking flexible access to capital markets through an "at-the-market" (ATM) offering or similar distribution mechanism. The document must comply with Canadian securities regulations, including provincial securities laws and national instruments such as NI 45-106 and NI 41-101. It outlines the relationship between the issuer and the distribution agent, detailing commission structures, distribution procedures, compliance requirements, and risk allocation. The agreement is commonly used by companies listed on Canadian exchanges like the TSX, though it can also be utilized by private companies under appropriate exemptions. The document includes comprehensive provisions for regulatory compliance, operational procedures, and ongoing obligations of all parties involved.
