The Ontario Securities Commission (OSC) has decided to vary a cease trade order (CTO) initially issued against Seafield Resources Limited. The original CTO, issued on December 19, 2014, under sections 127(1) and 127(5) of the Ontario Securities Act, prohibited trading in the company’s securities. This decision was also mirrored by securities regulators in British Columbia and Alberta.
The variation, made under section 144(1) of the Securities Act, allows beneficial shareholders who are neither insiders nor control persons to sell their securities outside of Canada, subject to certain conditions. These conditions include that the sale must occur through a market outside of Canada and be conducted through an investment dealer registered in Ontario. The variation aims to alleviate the disadvantage faced by Ontario resident shareholders compared to certain shareholders who could trade their shares on foreign markets. The OSC determined that varying the CTO in this manner would not be prejudicial to the public interest.
The order for this variation was issued on November 2, 2021, and reflects the OSC’s commitment to ensuring fair and equitable treatment of shareholders while maintaining the integrity of the markets and protecting the public interest.