The Ontario Securities Commission (OSC) has decided to vary a cease trade order originally issued against RDX Technologies Corporation. The initial order, which prohibited trading of the Issuer’s securities, was put in place due to concerns under sections 127(1) and 127(5) of the Ontario Securities Act. Similar orders were also issued by securities regulators in British Columbia, Alberta, and Manitoba.
The variation comes after a shareholder application under section 144(1) of the Act, highlighting that the existing cease trade order disadvantaged Ontario resident shareholders compared to those who could trade on foreign markets.
Upon review, the OSC agreed that allowing certain trades would not be against the public interest. Consequently, the OSC ordered that beneficial shareholders of RDX Technologies Corporation, who are not and were not insiders or control persons as of October 7, 2015, are permitted to sell their securities acquired before August 24, 2015. However, these sales must occur outside of Canada and through an investment dealer registered in Ontario.
This decision aims to level the playing field for Ontario shareholders while maintaining regulatory oversight and is dated July 30, 2021.