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by Mike Caswell
The B.C. Securities Commission has extended a temporary order that it imposed on a group of public companies and many individuals in December for abusive share issuances. The regulator has determined that there is enough evidence of "significant public interest concerns," at least for now. Among other things, the regulator cites very unusual financial transactions with consultants.
The extensions are part of a complex investigation in which the BCSC cited a large group of people and companies for illegal share distributions on the Canadian Securities Exchange. The BCSC said that the group misused exemptions normally reserved to issue shares to consultants. The matter is still in the preliminary stages, and the BCSC has not begun full proceedings against anybody. The regulator has simply imposed temporary orders designed to stop the conduct at issue.
Initially, the BCSC cited 11 public companies, all listed on the CSE. After considering submissions from the many parties to the case, the BCSC has now whittled the number of listings subject to the order down to four: Cryptobloc Technologies Corp., New Point Exploration Corp., Green 2 Blue Energy Corp. and Blok Technologies Inc. The companies are not allowed to issue shares to consultants, at least not without filing a prospectus first. (Such issuances are normally exempt from the prospectus requirement.)
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