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by Mike Caswell

The B.C. Securities Commission has found that former Canadian Securities Exchange listing Blok Technologies Inc. made false or misleading statements about a $5.4-million financing in 2018, failing to disclose that it would retain little of the money. It raised the $5.4-million in a private placement and then paid out $4.4-million to consultants who were connected to placees. The process amounted to a "cheque swap."

The findings against Blok are contained in a decision that the BCSC released on Thursday, Feb. 1. The decision finds Blok liable, without imposing any sanctions. The BCSC will hold a separate hearing to determine what those penalties should be.

The case arises from a financing that Blok arranged in 2018, when it was one of several companies promoting blockchain technology. The company said that it had a deal to use blockchain to handle supply chain management in the cannabis industry. Blok had never generated any revenue, and was dependent on raising money to develop its business.

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