The Securities Commission has revoked a cease trade order against an issuer after the issuer remedied its previous failure to file required continuous disclosure materials. The initial cease trade order was issued due to the issuer’s non-compliance with filing audited financial statements, management’s discussion and analysis (MD&A), and related certifications for the year ended November 30, 2015, as mandated by Ontario securities law.
The issuer subsequently addressed the defaults by updating its continuous disclosure filings, including annual audited financial statements for the years ended November 30, 2015, to November 30, 2021, interim unaudited financial statements, MD&A, and other required certifications and disclosures. However, certain interim financial statements and related disclosures from February 29, 2016, to August 31, 2019, remain unfiled.
Despite these outstanding filings, the issuer has met all other continuous disclosure obligations and paid all necessary fees. The issuer has also provided undertakings to hold an annual shareholder meeting within three months and not to engage in specific types of transactions without complying with prospectus requirements and obtaining regulatory approval.
The decision to revoke the cease trade order is based on the issuer’s remedial actions and the determination that revoking the order would not be prejudicial to the public interest. The revocation is supported by section 144 of the Securities Act, R.S.O. 1990, c. S.5, as amended. The issuer is expected to issue a news release and file a material change report upon revocation of the order.