Mr. Andrew Poon reports

BCSC SETTLES WITH TWO B.C. MEN FOR MISREPRESENTATIONS AND BREACH OF A CEASE TRADE ORDER

In settlement agreements with the British Columbia Securities Commission (BCSC), Darren Davidson and Paul Webster have admitted that they are liable for misrepresentations to investors and breaches of a cease trade order.

Prospective investors were given a business plan that failed to disclose that Titan-West had a 2012 operating loss of $566,050 on gold revenue of $41,307. Instead, the business plan disclosed an outdated 2012 pro forma financial statement with gross revenue of $12-million and net operating income of $6,959,418, which Mr. Davidson and Mr. Webster ought to have known would be relied on by investors. Four prospective investors who received the business plan invested $172,000.

On Feb. 13, 2014, the executive director of the BCSC issued a cease trade order for Titan-West securities. After the order was issued, Titan-West representatives solicited investments in Titan-West and Titan-West issued two promissory notes for $27,000 to two previous investors. This amount is included in the $172,000 invested by investors who received the business plan.

Between July, 2011, and August, 2014, Mr. Davidson and Mr. Webster were directors and officers (or de facto directors and officers) of Titan-West. As such, Mr. Davidson and Mr. Webster are liable for Titan-West's misrepresentations to investors and breaches of the cease trade order.

Mr. Webster and Mr. Davidson will each disgorge $48,000 to the BCSC as part of the settlement. Both men have been ordered to resign any positions they hold as directors or officers of an issuer or registrant.

Mr. Webster and Mr. Davidson are also banned from trading in or purchasing any securities or exchange contracts (with limited exceptions); relying on any of the exemptions set out in the Securities Act, the regulations or a decision; becoming or acting as a director or officer of any issuer or registrant (with limited exceptions); becoming or acting as a registrant or promoter; acting in a management or consultative capacity in connection with activities in the securities market; and engaging in investor relations activity. Mr. Webster's and Mr. Davidson's bans are to remain in effect for at least 12 years.

You may view the settlement agreements on BCSC's website by typing either name of the men discussed herein, 2018 BCSECCOM 169 or 2018 BCSECCOM 171 in the search box. Information about disciplinary proceedings can be found in the enforcement section of the BCSC website.

Please visit the Canadian Securities Administrators' (CSA) disciplined list for information relating to persons and companies disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA).

About the B.C. Securities Commission

The BCSC is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act.