The Ontario Securities Commission (OSC) has decided to vary a cease trade order originally issued against Pine Valley Mining Corporation. The initial order, which prohibited trading of the company’s securities, was put in place due to regulatory concerns and was meant to apply broadly to all trading activities.
Upon review, the OSC recognized that the existing restrictions placed Ontario resident shareholders at a disadvantage compared to those in foreign markets who could still trade. In light of this and the harmonization of policies under National Policy 11-207, which allows for certain carve-outs, the OSC concluded that it would not be against the public interest to vary the order.
The variation permits beneficial shareholders who are neither insiders nor control persons to sell their securities outside of Canada, provided the sales are made through a foreign organized regulated market and through an investment dealer registered in Canada in accordance with applicable securities laws.
This decision is grounded in Section 144(1) of the Ontario Securities Act, which allows for the variation or revocation of cease trade orders under certain conditions. The outcome aims to balance regulatory enforcement with fairness to shareholders, ensuring that those not responsible for the company’s regulatory issues are not unduly penalized. The variation order was issued on July 19, 2022.