Canadian Ownership and Control Determination Regulations, 1984 — 22
22 (1) For the purposes of this section, (a) a reference to an “applicant” includes an investor that is equity-related to the applicant and any investor that has a direct equity percentage or indirect equity percentage in respect of the applicant of 10% or more and any other investor that elects to be subject to this section; and (b) the number of units of a class of formal equity issuable in connection with a class of forward equity shall be the number issuable on the day selected under paragraph 30(1)(c) with respect to the class of formal equity or if no units of the class of formal equity are issued, the latest of the days selected for all classes of formal equity, or where no units are issuable on that day, on the day next following that day on which the units are issuable; (c) [Revoked, SOR/85-847, s. 8] (2) For the purposes of paragraph (7)(b) and subject to subsections (3), (4) and (6), the “market price” of a unit of a class of formal equity on any day is the simple average of the closing prices of units of that class for each day on which there was a closing price that falls not more than ten days, exclusive of Saturdays, Sundays and holidays, before that day. (3) Where there is more than one published market for a unit and only one such published market is within Canada, the closing price of that unit shall be determined solely by reference to the published market in Canada. (4) Where there is more than one published market for a unit and (a) more than one such published market is in Canada, or (b) no such published market is in Canada, the closing price of that unit shall be determined solely by reference to the published market within or outside Canada, as the case may be, on which the greatest volume of trading in the unit occurred during the ten days, exclusive of Saturdays, Sundays and holidays, before the day referred to in subsection (2). (5) For the purposes of subsections (2), (3), (4) and (7), closing price on any day means, with respect to a class of formal equity in respect of which there is a published market, (a) the price per unit at which the last trade in that class of formal equity was effected in the published market on that day, exclusive of (i) odd lot transactions, and (ii) block transactions and other transactions effected in a manner that is recognized by the rules of the published market and that differs from the conventional pricing process applicable to that market; or (b) on a day in which no transactions other than transactions referred to in subparagraphs (a)(i) and (ii) occurred and as to which closing bid and ask prices were published, the average of such bid and ask prices. (6) For the purposes of subsection (7), conversion price means the aggregate of (a) the proportion x/y, where (i) x is the lesser of (A) the price paid by the first purchaser from the entity, or a person acting as an underwriter for the entity, for the unit of a class of forward equity, and (B) nil, if the unit of a class of forward equity would have a value of nil on the day selected under paragraph 30(1)(c) if the right to acquire the units of a class of formal equity conferred by the unit of a class of forward equity had expired immediately prior to that day, and (ii) y is the number of units issuable pursuant to the exercise of the right conferred by the unit of a class of forward equity on the day selected under paragraph 30(1)(c) or, if no units are so issuable on that day, on the day next following that day on which they are so issuable; and (b) any consideration payable to the entity in connection with the issue of a unit of a class of formal equity upon exercise of such right. (7) Where units are issuable that, if issued would form part of a publicly traded class of formal equity of an applicant, are issuable pursuant to the exercise of a right conferred by a unit of a class of forward equity that is not a bearer unit and (a) the unit of a class of forward equity was issued not more than five years prior