The Ontario Securities Commission (OSC) has granted a partial revocation of a cease trade order (CTO) against West Island Brands Inc. The CTO was initially imposed due to the company’s failure to file audited annual financial statements and other continuous disclosure documents. The partial revocation allows the company to proceed with a private placement to accredited investors, aiming to raise up to $200,000 through the issuance of units, each comprising one common share and one warrant.
The decision is based on the company’s application and representations, including its intention to use the proceeds to comply with its continuous disclosure obligations, pay outstanding fees, and for working capital. The company has also committed to providing subscribers with copies of the CTO and the partial revocation order, along with obtaining signed acknowledgments that the securities will remain under the CTO until fully revoked.
The partial revocation is subject to conditions, including compliance with the accredited investor exemption and the provision of documentation to the OSC upon request. The order will expire 60 days from the date of issuance or upon the closing of the financing, whichever comes first.
The decision is grounded in Section 144 of the Securities Act (Ontario), which allows for partial revocation of CTOs, and is informed by National Policy 11-207 concerning failure-to-file CTOs and revocations in multiple jurisdictions.