RE:RE:Does this mean...Ok that worked well, now let me add the info now that I got your attention, lol.
Advantages of a Shelf Prospectus
- Quick access to markets: Generally one week from deal terms announced to closing and cash in the bank.
- Flexibility: In addition to ordinary equity, units, warrants and debt securities may be offered under the base shelf prospects.
- Certainty: Prospectus supplements are not generally reviewed by securities commissions. Many financings have been interrupted and, in some cases, derailed by securities commission review of the offering company’s technical reports. Filing a base shelf prospectus ensures that the technical reports are not reviewed each time the market is accessed.
- Less cost: Once a base shelf prospectus has been filed, accessing the capital markets requires only finalization of a prospectus supplement – a much less complex document than even a short form prospectus. This results in lower future financing costs for the issuer.
- Attractiveness to Agents/Underwriters: The ability to close a shelf prospectus financing quickly means less market risk for agents and underwriters, making it more likely they will agree to assist with a financing at any given time.
- Security: Once filed, a base shelf prospectus is valid for 25 months and permits ongoing financing from time to time of up to the dollar amount stated in the prospectus.
- Marketing: After a receipt has been issued for a base shelf prospectus, securities regulators do not have the same regulatory concerns about “marketing” before the filing of a shelf prospectus supplement as they do about “pre-marketing” before the filing of a short form prospectus or a long form prospectus.
Market Perception
There has been a perception that filing a shelf prospectus will signal imminent financing and create a market overhang. Our experience is that negative market reaction, if any, is temporary.