The Ontario Securities Commission (OSC) has granted a partial revocation of a cease trade order (CTO) against West Island Brands Inc. The CTO was originally issued due to the company’s failure to file audited annual financial statements and other required documents. The partial revocation allows the company to proceed with a private placement to accredited investors in order to raise up to $200,000 through the issuance of units. The proceeds will be used to bring the company into compliance with its continuous disclosure obligations, pay outstanding fees, and for working capital.
The decision is based on the company’s representations, including its intention to use the financing to resolve outstanding issues and its commitment to provide subscribers with relevant information about the CTO and the partial revocation. The order is contingent upon the company meeting certain conditions, such as providing subscribers with copies of the CTO and the order, and obtaining signed acknowledgments from them.
The partial revocation is based on the test set out in the Securities Act (Ontario) and is subject to the conditions that the company complies with the requirements set by the OSC. The order will expire 60 days from the date of issuance or upon the closing of the financing, whichever comes first. The relevant legislative provisions include Section 144 of the Securities Act (Ontario) and National Policy 11-207 regarding Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions.