The Ontario Securities Commission (OSC) has decided to vary a cease trade order originally issued against Spyglass Resources Corp. The variation allows beneficial shareholders, who are neither insiders nor control persons, to sell their securities outside of Canada under certain conditions. This decision was made under section 144(1) of the Ontario Securities Act, R.S.O. 1990, c. S.5.
The OSC recognized that the original cease trade order placed Ontario resident shareholders at a disadvantage compared to other shareholders who could trade on foreign markets. The variation aligns with the Canadian Securities Administrators’ harmonized approach, which includes standard carve-out language to permit sales on foreign organized regulated markets if specific conditions are met.
The conditions for the sale of securities under the varied order are: the sale must occur through a foreign organized regulated market as defined by the Investment Industry Regulatory Organization of Canada, and the sale must be conducted through an investment dealer registered in a Canadian jurisdiction in accordance with applicable securities legislation.
This decision was made considering it would not be prejudicial to the public interest and aims to provide fairness to Ontario shareholders. The order variation was dated September 16, 2022.