The Ontario Securities Commission (OSC) has granted a partial revocation of a cease trade order (CTO) against World Outfitters Corporation Safari Nordik, allowing the company to proceed with a private placement of debentures. The original CTO was issued due to the company’s failure to file required continuous disclosure documents. The company, now a shell with no assets, intends to use the proceeds from the private placement to update its continuous disclosure records and pay associated fees.
The decision, based on Section 144 of the Securities Act (Ontario), permits the company to trade securities and engage in activities necessary for the private placement, provided certain conditions are met. These conditions include ensuring potential investors receive copies of the CTO and the partial revocation order, acknowledge that the revocation does not guarantee future full revocation, and are aware that the company’s securities remain under the CTO until it is fully revoked.
The partial revocation is subject to a 60-day time limit or until the completion of the private placement, whichever comes first. The company has committed to bringing its continuous disclosure obligations up to date and paying all outstanding fees within 60 days of the private placement’s closing. The decision was made in consideration of public interest and with the recommendation of the Commission’s staff.