Georgeson Shareholder Communications Canada Inc has received relief from registration requirements for trades under its “asset reunification program,” the Ontario Securities Commission said today.

In a notice dated June 11, the OSC said the purpose of the program is to reunite security holders with the consideration to which they were entitled under the merger/acquisition transaction, redemption/maturity or spin-out.

Under this program, Georgeson is engaged by issuers to assist them in locating securityholders who either: hold securities of entities acquired or merged into, or securities which have by their terms matured or terminated or been redeemed by issuers who failed to tender or submit their securities; or, by virtue of their ownership of securities are entitled to receive securities of an entity that has been spun-out.

Securityholders who agree to participate in the program are charged a fee by Georgeson (typically 10%) of the consideration to which such securityholders are entitled. This fee is deducted from the cash to be received, unless there isn’t enough cash. Then, the shareholder is invoiced.

It intends to modify the program so that it can receive securities rather than cash, without invoicing shareholders.
Without the relief, Georgeson would be prohibited from changing the program, as it would require registration to trade the securities it received.

It has received the relief, although in Ontario and Newfoundland and Labrador, Georgeson must register as a limited market dealer in six months.