Toronto-based Aequitas NEO Exchange Inc. announced on Thursday that it has received designated offshore securities market status from the U.S. Securities and Exchange Commission (SEC).
This means that as of Jan. 5, NEO listed companies and their shareholders can rely on certain safe harbours provided by Regulation S under the U.S. Securities Act of 1933.
“We are very pleased to receive the SEC designated offshore securities market status,” says Jos Schmitt, president and CEO of NEO Exchange, in a statement. “This is an important milestone to ensure NEO-listed securities are available to the broadest possible audience. With this status, we look forward to continued growth of our listings business.”
Rule 903 of Regulation S provides a safe harbour for offers and sales of securities by issuers and others in offshore transactions and to non-U.S. persons, without registration under the Securities Act of 1933.
For shareholders, Rule 904 of Regulation S provides a safe harbour for resales of securities on the NEO Exchange, as the designated offshore securities market status allows such transactions to qualify as offshore transactions under the U.S. law.