The Ontario Securities Commission (OSC) has revoked a cease trade order (CTO) against ONEnergy Inc. after the company remedied its previous defaults in continuous disclosure. The CTO was originally issued on May 6, 2019, because ONEnergy failed to file audited annual financial statements, management’s discussion and analysis (MD&A), and related certifications for the year ended December 31, 2018, as required by Ontario securities law.
ONEnergy subsequently failed to file additional continuous disclosure documents but has since brought its filings up to date, including the originally required documents and all subsequent outstanding continuous disclosure documents. The company is now in compliance with its obligations under the CTO and securities legislation, except for the existence of the CTO itself.
The company has also paid all outstanding fees, updated its profiles on SEDAR and SEDI, and provided a written undertaking that it will not complete certain transactions involving material underlying businesses not located in Canada unless it meets specific prospectus filing requirements. Additionally, ONEnergy has committed to holding an annual meeting within three months after the revocation of the CTO and to disclose the revocation through a news release and a material change report.
The OSC, acting as the Principal Regulator, determined that revoking the CTO is appropriate under the Securities Act (Ontario) and National Policy 11-207. The decision was based on the company’s remediation of its continuous disclosure defaults and compliance with relevant securities regulations. The CTO has been revoked, allowing ONEnergy to resume trading of its securities.