The Securities Commission has decided to revoke a cease trade order (CTO) that was previously issued against Sprout AI Inc. due to the company’s failure to file certain required continuous disclosure materials. The CTO was initially put in place by both the British Columbia Securities Commission (as the Principal Regulator) and the Ontario Securities Commission on April 5, 2022.
Sprout AI Inc. applied for the revocation of the CTO under National Policy 11-207, which deals with Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions. The company has since remedied the defaults by updating its continuous disclosure filings.
The decision to revoke the CTO was made in accordance with the criteria set out in the applicable securities legislation, specifically under section 144 of the Securities Act, R.S.O. 1990, c. S.5, as amended. The revocation reflects the decision of both the British Columbia and Ontario Securities Commissions, with Ontario opting into the revocation order issued by British Columbia.
The revocation order was finalized on December 22, 2022, by Allan Lim, CPA, CA, Manager of Corporate Disclosure in Corporate Finance.