The Ontario Securities Commission (OSC) has granted a partial revocation of a cease trade order (CTO) against E Ventures Inc., a company that was restricted from trading due to its failure to file required continuous disclosure documents. The CTO was initially issued because E Ventures Inc. did not submit audited annual financial statements, management’s discussion and analysis (MD&A), and other related certificates for the year ended December 31, 2002, and subsequent periods up to September 30, 2022.
E Ventures Inc. sought the partial revocation to conduct a private placement of common shares to raise up to $233,000. The funds are intended to cover the costs of preparing and filing the overdue continuous disclosure documents and to pay related fees. The private placement will be conducted in compliance with the accredited investor prospectus exemption under Ontario securities law.
The OSC’s decision, made under Section 144 of the Securities Act (Ontario), is contingent on several conditions. These include providing each subscriber with a copy of the CTO and the partial revocation order, obtaining signed acknowledgments that the securities will remain under the CTO, and that the partial revocation does not ensure a future full revocation. E Ventures Inc. must also issue press releases and file material change reports as necessary.
The partial revocation is time-limited, expiring upon the closing of the private placement or after 60 days from the date of the order, whichever comes first. The decision also includes a director’s caution letter due to inaccurate statements in the application materials submitted by E Ventures Inc. The relevant laws and regulations include the Securities Act (Ontario), National Instrument 52-109, National Instrument 45-106, and Multilateral Instrument 61-101.