The Securities Commission has granted a partial revocation of a cease trade order (CTO) to EasTower Wireless Inc. The company, a reporting issuer in British Columbia, Alberta, and Ontario, was initially cease traded due to its failure to file audited annual financial statements and other required documents for the year ended December 31, 2022. The failure was attributed to financial difficulties, specifically the lack of funds to pay for the audit.
EasTower Wireless Inc. sought the partial revocation to complete a private placement of $60,000 in Ontario through unsecured promissory notes, with the intention of using the proceeds to address its outstanding financial reporting obligations and related fees, and to provide working capital.
The partial revocation was granted under Section 144 of the Securities Act (Ontario) and is subject to conditions, including that the company must inform investors about the CTO and the partial revocation, and obtain written acknowledgments from them. The company must also issue press releases and file material change reports as necessary.
The decision was made based on the belief that the partial revocation meets the test set out in the relevant legislation and that the proceeds from the financing will allow the company to update its continuous disclosure records and maintain operations. The company also plans to apply for a full revocation of the CTO after addressing its disclosure obligations and has no current plans for a Change of Business or Reverse Takeover.
The outcome allows EasTower Wireless Inc. to proceed with the proposed financing under certain prospectus exemptions, with the aim of rectifying its continuous disclosure defaults and stabilizing its financial position.