The Ontario Securities Commission (OSC) has decided to vary a cease trade order originally issued against Argosy Minerals Limited. This order, stemming from the Securities Act, R.S.O. 1990, c. S.5, had prohibited trading of the company’s securities due to non-compliance with regulatory requirements.
The variation allows beneficial shareholders who are not insiders or control persons to sell their securities outside of Canada, provided they were acquired before the original cease trade order date and the sale is conducted through an Ontario-registered investment dealer. This decision was made under section 144(1) of the Securities Act, which allows for such variations if they are not prejudicial to the public interest.
The OSC’s rationale for the variation is to alleviate the disadvantage faced by Ontario resident shareholders compared to certain other shareholders who can trade on foreign markets. The outcome is a limited relaxation of the cease trade order, balancing regulatory compliance with shareholder rights.