The Ontario Securities Commission (OSC) has varied a cease trade order (CTO) originally issued against High North Resources Ltd. on February 5, 2016, which prohibited trading of the company’s securities. The variation allows beneficial shareholders who are not insiders or control persons to sell their securities outside of Canada under certain conditions.
The decision was made following an application to the OSC under section 144(1) of the Ontario Securities Act, R.S.O. 1990, c. S.5, as amended. The Director of the OSC agreed to the variation due to three main reasons:
1. The original CTO disadvantaged Ontario resident shareholders compared to others who could trade on foreign markets.
2. A harmonization of policy by the Canadian Securities Administrators on June 23, 2016, under National Policy 11-207, introduced standard language allowing for sales of securities under a CTO in foreign markets if conditions are met.
3. The variation was not considered prejudicial to the public interest.
The variation permits the sale of securities acquired before February 5, 2016, through a foreign organized regulated market, and the sale must be conducted through an investment dealer registered in Canada in accordance with applicable securities legislation. This order was dated January 4, 2023.