The Securities Commission issued a partial revocation of a cease trade order (CTO) against Easy Technologies Inc., which had been cease traded due to its failure to file audited annual financial statements. The company sought this partial revocation to conduct a private placement to raise funds, aiming to use the proceeds to update its continuous disclosure documents and pay related fees.
The CTO was initially issued because the company did not file certain financial reports and statements on time, attributed to financial difficulties. The company, which has no significant assets and is not currently operating any business, proposed a private placement of up to $165,000 through the issuance of common shares to accredited investors in British Columbia, Ontario, and Alberta.
The Securities Commission granted the partial revocation under specific conditions, including that potential investors must be informed about the CTO and acknowledge that all securities, including those issued in the private placement, will remain under the CTO until it is fully revoked. The company must provide written acknowledgments from investors to the Commission upon request.
The partial revocation is based on the Securities Act (Ontario), specifically sections 127 and 144, and National Policy 11-207. The order will expire upon the completion of the private placement or after 90 days from the date of the order, whichever comes first. The company plans to apply for a full revocation of the CTO after addressing its continuous disclosure obligations and paying outstanding fees.