National Instrument 44-103 - Post-receipt Pricing (NI 44-103) contains the post-receipt pricing procedures (the “PREP procedures”). Issuers and selling securityholders can use the PREP procedures of NI 44-103 to distribute securities, other than rights under a rights offering. A PREP prospectus can be based on a long form prospectus under National Instrument 41-101 - General Prospectus Requirements (NI 41-101) or short form prospectus under National Instrument 44-101- Short Form Prospectus Distributions (NI 44-101), as modified by the PREP procedures.

If eligible to use a short form prospectus, NI 44-101 outlines the procedure and form requirements, which are supplemented with additional requirements for the PREP procedures in NI 44-103.

If a long form prospectus is to be used, NI 41-101 outlines the procedure and form requirements, which are supplemented with additional requirements for the PREP procedures in NI 44-103.

The PREP procedures allow issuers to file a final base PREP prospectus that omits pricing and related information. Once pricing is determined, a supplemented PREP prospectus that contains all of the omitted information is filed with the applicable securities regulatory authorities and provided to purchasers. This gives issuers greater flexibility in timing an offering to take advantage of market opportunities.

See Practice Notes, Prospectus Offerings in Canada: Overview and National Instrument 44-103 - Post-Receipt Pricing (PREP).