Scorpion venom research company did not commit misconduct, B.C. regulator rules
A Vancouver-based health sciences company that was attempting to develop synthetic scorpion venom withheld relevant information from investors, but that omission did not necessarily have an impact on the company's stock price, B.C.'s financial regulator has ruled.
A panel of the B.C. Securities Commission dismissed the allegations against PreveCeutical Medical Inc. and its CEO Stephen Van Deventer in a decision issued this week.
The commission's executive director had accused PreveCeutical and Van Deventer of misconduct stemming from a news release the company issued in 2018. In the release, the company said it had raised approximately $6.5 million through a private placement, but it did not share that approximately $3.2 million of the total had already been paid or would be paid to consultants.
Panels of the BCSC have found these types of omissions to be misconduct in the past, such as when a blockchain company failed to disclose it would be paying most of the $5.4 million it had raised to consultants.
In this case, however, the panel found that PreveCeutical's omission, while misleading, did not necessarily constitute a "material" omission that would have a significant effect on the company's market value.
"The executive director must prove on a balance of probabilities not simply that investors were misled, but also that the impact would have been sufficiently serious from the point of view of reasonable investors that the effect on market price would have been significant," the panel explains in its decision.
The panel concluded that this was "an open question" in the case of PreveCeutical's news release, in part because the company had previously disclosed publicly that only about 10 per cent of its available funds were being spent on research and development.
Reasonable investors would have felt they weren't given all of the necessary facts in the news release, the panel found, but that doesn't necessarily mean there would be a significant effect on share prices.
"Although the executive director has come close, the evidence introduced before us has not established on a balance of probabilities that the omission which has been proven was material in the sense required by the relevant provisions of the (Securities) Act," the decision reads.
For this reason, the panel dismissed the allegations against PreveCeutical and Van Deventer.
CTVNews.ca Top Stories
Amber Alert ended for 2 children near Quebec City
The Amber Alert for two children in the Quebec City region has ended.
Netanyahu acknowledges 'tragic mistake' after Rafah strike kills dozens of Palestinians
Israeli Prime Minister Benjamin Netanyahu acknowledged Monday that a "tragic mistake" had been made after an Israeli strike in the southern Gaza city of Rafah set fire to a tent camp housing displaced Palestinians and, according to local officials, killed at least 45 people.
Mike Tyson had medical issue on cross-country flight
Boxing legend Mike Tyson required medical attention after experiencing an 'ulcer flare up' toward the end of a cross-country flight Sunday, his representatives confirmed to the New York Post.
Why Canada's big grocery stores are under investigation
Amid mounting outrage over high grocery prices, a retail expert says there's a solution to fostering more competition in the country.
Arrests made in 'highly orchestrated' GTA auto theft operation: police
Peel Regional Police say they have arrested 16 suspects and issued arrest warrant for another 10 individuals in connection with an auto theft investigation carried out by a 'highly orchestrated criminal operation.'
Indigo Books & Music shareholders vote to approve privatization sale
Indigo Books & Music Inc. shareholders have voted to approve a deal that will see the retailer become a private company.
Cattle rustling comes to Quebec as police investigate suspected theft of entire herd
Quebec provincial police are investigating after an entire herd of about 75 cattle were allegedly stolen in the Eastern Townships region last week.
B.C. senior prepares to move due to devastating effects of fraud
A Courtenay, B.C., senior is downsizing and packing to move as she comes to accept she can no longer afford to stay in her home, after falling victim to a scam that robbed her of her life savings worth more than $100,000.
Canada pledges visas for 5,000 Gaza residents related to Canadians
Canada said on Monday it would grant temporary visas to 5,000 Gaza residents under a special program for Canadians' relatives living in the war-torn enclave, a preparatory move in case they are able to leave in the future.