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Insider Report for a Share Consolidation or Split

Requirement

When there is a share consolidation or split due to an issuer event the insiders of the issuer are required to record a transaction adjusting their holdings accordingly.

Exemption

Part 8 of NI 55-104 contains an exemption for insiders which allows them to file the change in their holdings due to an issuer event at the time they file their next insider report on SEDI. See the PDF version of NI 55-104 available in Additional Information on the SEDI Help welcome page. The effective date of NI 55-104 is April 30, 2010.

Calculating Your Holdings after an Issuer Event

The table below shows you how to calculate your holdings after an issuer event.

If the issuer event is a

then the insider would

consolidation

divide their current holdings according to the basis of the issuer event and record a disposition of shares transaction.

Use Nature Code 37 – Stock split or consolidation

Example: 4-for-1 consolidation
Insider currently holds 100 shares, after the consolidation the insider would hold 25 shares, a transaction disposing of 75 shares would be required to adjust the balance to 25.

split

multiply their current holdings according to the basis of the issuer event and record an acquisition of shares transaction.

Use Nature Code 37 – Stock split or consolidation

Example: 4-for-1 split
Insider currently holds 100 shares, after the split the insider would hold 400 shares, a transaction acquiring 300 shares would be required to adjust the balance to 400.

How to File and Insider Report for a Share Consolidation or Split

Instructions to file an insider report for a share consolidation or split are similar to filing a common share transaction:

File an Insider report for Common Shares