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by Mike Caswell

Speakeasy Cannabis Club Ltd., one of several listings named as part of the B.C. Securities Commission's case over abusive share issuances on the Canadian Securities Exchange, has settled the matter without a hearing. The company has avoided any financial penalties, agreeing to hire an independent monitor for one year. The BCSC had accused Speakeasy of improprieties in a $3-million private placement from 2018.

The deal with Speakeasy is contained in a settlement agreement that the BCSC released late on Tuesday, May 5. The deal stems from a financing that Speakeasy closed in July, 2018. The placement was supposedly for $3-million, but Speakeasy actually only received $1.55-million, a fact that it did not disclose. The company returned the remainder of the money as purported consulting fees, the BCSC says. Those purported consultants, who provided no services, later sold their shares on the market, realizing a $1.53-million profit, according to the settlement.

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