Location: TSX Company Manual > Part X Special Purpose Acquisition Corporations (SPACs) > B. Original listing Requirements > Prohibition of Debt Financing > Sec. 1009.

Prohibition of Debt Financing Use of Proceeds Raised in the IPO and Escrow Requirements

Sec. 1009.

  Versions
(2 versions)
 
Dec 19 2008 - Oct 3 2018Oct 4 2018 onwards

The SPAC shall not be permitted to obtain any form of debt financing (excluding ordinary course short term trade or accounts payables) other than contemporaneous with, or after, completion of its qualifying acquisition. A credit facility may be entered into prior to completion of a qualifying acquisition, but may only be drawn down contemporaneous with, or after, completion of a qualifying acquisition.

Despite the foregoing, a SPAC may obtain unsecured loans on reasonable commercial terms, including from founding securityholders or their affiliates, up to a maximum aggregate principal amount equal to 10% of the funds escrowed under Section 1010 repayable in cash no earlier than the closing of the qualifying acquisition, provided that (1) such limit is disclosed in the IPO prospectus; and (2) any such debt financing obtained by the SPAC shall not have recourse against the escrowed funds.

Every SPAC seeking a listing on the Exchange must include a statement in its IPO prospectus that it will not obtain any form of debt financing other than in accordance with this Section 1009.


Prohibition of Debt Financing Use of Proceeds Raised in the IPO and Escrow Requirements

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