The use of flow-through share financing arrangements has grown in recent years and is expected to continue to do so in the future. The latest figures available from the Canada Revenue Agency indicate an increase in not only the number of corporations utilizing flow-through share arrangements but also in the total dollar value of funds raised under such arrangements. These figures indicate that the amount raised through flow-through share financing arrangements has increased from approximately $750 million in 1998 to over $1.8 billion in 2003. While flow-through shares are widely used, the securities and tax rules relating to them are complex.

type Securities & Capital Markets Bulletin - Fall 2004