The Ontario Securities Commission (OSC) has revoked a cease trade order (CTO) previously issued against Enablence Technologies Inc. due to the company’s failure to file required continuous disclosure documents on time. The CTO was initially imposed because the company did not submit its interim financial statements, management’s discussion and analysis (MD&A), and certifications for the period ending March 31, 2020, by the prescribed deadline.
Enablence Technologies Inc. experienced disruptions from the COVID-19 pandemic, which contributed to its inability to comply with filing obligations. Despite intending to use regulatory relief provided for pandemic-related disruptions, the company missed the deadline to announce this intention.
After the CTO was issued, the company also failed to file additional documents, including annual and interim financial statements, MD&A, certifications, and executive compensation statements for subsequent periods. An error requiring restatement of the 2019 annual financial statements was also identified and corrected.
The company has since remedied the defaults by updating all required filings and paying the necessary fees. It has also provided a written undertaking to hold an annual meeting within three months of the CTO revocation. The OSC determined that the company is now up-to-date with its continuous disclosure obligations and is not in default of any other securities law requirements, except for the existence of the CTO itself.
Based on these facts, the OSC concluded that revoking the CTO is justified under the applicable securities legislation, specifically Section 144 of the Securities Act, R.S.O. 1990, c. S.5, as amended. The decision aligns with National Policy 11-207 Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions. Consequently, the OSC has revoked the CTO, allowing the company to resume trading its securities.