The Securities Commission has granted an order for Cequence Energy Ltd. to cease being a reporting issuer, meaning it will no longer be subject to public reporting requirements. The decision is based on several key points:
1. Cequence Energy Ltd. is not an OTC reporting issuer and has fewer than 15 security holders in each jurisdiction in Canada and fewer than 51 worldwide.
2. Its securities are not traded on any public marketplace in Canada or elsewhere.
3. The company is undergoing restructuring under the Companies’ Creditors Arrangement Act (CCAA), with its common shares delisted from the Toronto Stock Exchange and a plan of compromise and arrangement approved by creditors and sanctioned by the court.
4. Post-restructuring, the company will become privately held, with its previously issued equity securities canceled and new shares issued to new shareholders.
5. Cequence Energy Ltd. is not in default of any reporting obligations except for the failure to file certain financial documents due to the restructuring process.
The decision is supported by the Securities Act, R.S.O. 1990, c. S.5, as amended, specifically section 1(10)(a)(ii). The order reflects the regulators’ satisfaction that the company meets the legislative requirements to cease being a reporting issuer.