130.1 (1) Where an offering memorandum contains a misrepresentation, a purchaser who purchases a security offered by the offering memorandum during the period of distribution has, without regard to whether the purchaser relied on the misrepresentation, the following rights: 1. The purchaser has a right of action for damages against the issuer and a selling security holder on whose behalf the distribution is made. 2. If the purchaser purchased the security from a person or company referred to in paragraph 1, the purchaser may elect to exercise a right of rescission against the person or company.  If the purchaser exercises this right, the purchaser ceases to have a right of action for damages against the person or company.  2004, c. 31, Sched. 34, s. 7. Defence (2) No person or company is liable under subsection (1) if he, she or it proves that the purchaser purchased the securities with knowledge of the misrepresentation.  1999, c. 9, s. 218. Limitation in action for damages (3) In an action for damages pursuant to subsection (1), the defendant is not liable for all or any portion of the damages that the defendant proves do not represent the depreciation in value of the security as a result of the misrepresentation relied upon.  1999, c. 9, s. 218. Joint and several liability (4) Subject to subsection (5), all or any one or more of the persons or companies specified in subsection (1) are jointly and severally liable, and every person or company who becomes liable to make any payment under this section may recover a contribution from any person or company who, if sued separately, would have been liable to make the same payment, unless the court rules that, in all the circumstances of the case, to permit recovery of the contribution would not be just and equitable.  1999, c. 9, s. 218. Same (5) Despite subsection (4), an issuer shall not be liable where it is not receiving any proceeds from the distribution of the securities being distributed and the misrepresentation was not based on information provided by the issuer, unless the misrepresentation, (a) was based on information that was previously publicly disclosed by the issuer; (b) was a misrepresentation at the time of its previous public disclosure; and (c) was not subsequently publicly corrected or superseded by the issuer prior to the completion of the distribution of the securities being distributed.  1999, c. 9, s. 218. Limitation re amount recoverable (6) In no case shall the amount recoverable under this section exceed the price at which the securities were offered.  1999, c. 9, s. 218. No derogation of rights (7) The right of action for rescission or damages conferred by this section is in addition to and without derogation from any other right the purchaser may have at law.  1999, c. 9, s. 218. Application (8) This section applies only with respect to an offering memorandum which has been furnished to a prospective purchaser in connection with a distribution of a security under an exemption from section 53 of the Act that is specified in the regulations for the purposes of this section.  2001, c. 23. s. 216. Section Amendments with date in force (d/m/y) 1999, c. 9, s. 218 - 14/12/1999 2001, c. 23, s. 216 - 05/12/2001 2004, c. 31, Sched. 34, s. 7 - 16/12/2004