The Securities Commission has decided to vary a cease trade order that was previously issued for the securities of Iona Energy Inc. The original order, which prohibited trading of the company’s securities, was put in place due to concerns under sections 127(1) and 127(5) of the Securities Act, R.S.O. 1990, c. S.5. This decision was made after recognizing that the existing restrictions were disadvantaging Ontario resident shareholders compared to others who could trade on foreign markets.
The variation, made under section 144(1) of the Act, allows beneficial shareholders who are not insiders or control persons, and who owned securities before the cease trade order was implemented, to sell their shares. However, two conditions must be met for the sale: it must occur outside of Canada and be conducted through an investment dealer registered in Ontario. This adjustment aims to level the playing field for all shareholders without compromising the public interest. The decision was finalized on April 27, 2021.