Investor Presentaiton
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Statutory Rights Rescission - Prince Edward Island.
PRINCE EDWARD ISLAND INVESTORS
If an offering memorandum, together with any amendment thereto, is delivered to a purchaser and the offering memorandum, or any amendment thereto, contains a misrepresentation, a purchaser
has, without regard to whether the purchaser relied on the misrepresentation, a statutory right of action for damages against (a) the issuer, (b) subject to certain additional defenses, against every
director of the issuer at the date of the offering memorandum and (c) every person or company who signed the offering memorandum, but may elect to exercise the right of rescission against the
issuer (in which case the purchaser shall have no right of action for damages against the aforementioned persons or company).
No action shall be commenced to enforce the right of action discussed above more than: (a) in the case of an action for rescission, 180 days after the date of the transaction that gave rise to the cause
of action; or (b) in the case of any action for damages, the earlier of: (i) 180 days after the purchaser first had knowledge of the facts giving rise to the cause of action; or (ii) three years after the date
of the transaction that gave rise to the cause of action.
Securities legislation in Prince Edward Island provides a number of limitations and defenses to such actions, including:
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3.
no person or company will be liable if it proves that the purchaser purchased the securities with knowledge of the misrepresentation;
in an action for damages, the defendant is not liable for all or any portion of the damages that it proves does not represent the depreciation in value of the securities as a result of the
misrepresentation relied upon; and
in no case shall the amount recoverable under the right of action described herein exceed the price at which the securities were offered under the offering memorandum, or any amendment
thereto.View entire presentation