CALGARY, AB, Sept. 14, 2020 /CNW/ – The Alberta Securities Commission (ASC) has concluded a Compliance Settlement Agreement with Perpetual Industries Inc. (Perpetual), arising out of the issuance of securities in breach of an ASC cease trade order (CTO).
On December 4, 2015, the ASC issued a CTO against Perpetual, an over-the-counter (OTC) listed issuer, for failure to file periodic disclosure as required under the Securities Act (Alberta). While subject to the CTO and over a three year period, Perpetual issued convertible notes, warrants and stock options in breach of the CTO. Perpetual self-reported the securities misconduct to the ASC and was proactive and collaborative throughout the resolution of this matter. Perpetual remedied the deficient filings and under the settlement agreement paid $10,000 to the ASC.
“OTC reporting issuers and their insiders are required in Alberta to comply with all relevant disclosure requirements including National Instrument 51-102 Continuous Disclosure Obligations and the filing of an annual information form,” said David Linder, Executive Director of the ASC. “Failure to do so may result in the ASC issuing a CTO until disclosure deficiencies are remedied. Breaches of CTOs are taken seriously as they undermine our disclosure-based system and pose harm to investors and the compliant issuers trying to efficiently raise capital.”
The ASC revoked the CTO issued against Perpetual on July 6, 2020. A copy of the settlement agreement and the revocation order can be found on the ASC website at albertasecurities.com.
The ASC is the regulatory agency responsible for administering the province’s securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada’s capital markets.
SOURCE Alberta Securities Commission
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