The Securities Commission has decided to vary a cease trade order originally issued against Colossus Minerals Inc. This variation allows beneficial shareholders, who are neither insiders nor control persons, to sell their securities outside of Canada under certain conditions. This decision was made under section 144(1) of the Ontario Securities Act, R.S.O. 1990, c. S.5, as amended, which provides the Commission with the authority to make such a variation if it is not prejudicial to the public interest.
The original cease trade order was issued due to concerns that trading in the securities of Colossus Minerals Inc. might be detrimental to investors and the public. However, upon review, the Director found that the order placed Ontario resident shareholders at a disadvantage compared to certain shareholders who could trade on foreign markets. To rectify this, the Commission has allowed these shareholders to sell their securities, provided the sales are made through a market outside of Canada and through an investment dealer registered in Ontario.
The outcome of this decision is that certain shareholders of Colossus Minerals Inc. now have the opportunity to sell their securities despite the cease trade order, as long as they comply with the specified conditions. This variation aims to balance the protection of the public interest with the rights of individual shareholders.