Focus on Securities|Corporate Finance - March 2013: Ontario Court Decision Highlights Importance Of Termination Rights In Bought Deal Letters

more+
less-

A recent decision of the Ontario Superior Court in Stetson Oil & Gas Ltd. v. Stifel Nicolaus Canada Inc. highlights the importance of including termination rights in bought deal letters and other engagement letters used in capital markets transactions.

The case involved Stifel Nicolaus Canada (then Thomas Weisel Partners) refusing to close a private placement of subscription receipts after executing a bought deal letter with Stetson Oil & Gas Ltd. in July of 2008. Following an unsuccessful marketing process, Stifel refused to proceed with the transaction, including failing to negotiate a definitive underwriting agreement.

Please see full Newsletter below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Topics:  Bought Deal Letters, Termination Clauses, Underwriting Agreements

Published In: General Business Updates, Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Dentons | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »