The Securities Commission has revoked a cease trade order (CTO) against an issuer, BitRush Corp., after the company remedied its previous failures to file required continuous disclosure materials. The CTO was initially issued due to the company’s non-compliance with filing certifications for financial information for the period ended September 30, 2016, as mandated by National Instrument 52-109.
BitRush Corp. subsequently failed to file audited annual financial statements and related management’s discussion and analysis for several years, as well as quarterly financial statements and certifications by the CEO and CFO. However, the company has since updated all required filings and certifications, paid all outstanding fees, and is now in compliance with continuous disclosure obligations.
The decision to revoke the CTO was based on the company’s representations that it has resolved its financial distress, which was partly due to legal actions against its former CEO, and has no plans for restructuring transactions involving businesses outside of Canada without proper prospectus filings. The company has also provided an undertaking to hold an annual shareholder meeting within three months of the CTO revocation and to comply with additional requirements for any future significant transactions.
The revocation was granted under section 144 of the Securities Act (R.S.O. 1990, c. S.5) and in accordance with National Policy 11-207. The company has assured that its SEDAR profile is current and that there have been no undisclosed material changes in its business. Upon revocation of the CTO, BitRush Corp. will issue a news release and file a material change report outlining its future plans.