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
Iran's president and foreign minister die in helicopter crash at moment of high tensions in Mideast
Iranian President Ebrahim Raisi and the country's foreign minister were found dead Monday hours after their helicopter crashed in fog, leaving the Islamic Republic without two key leaders as extraordinary tensions grip the wider Middle East.
Woman in her 30s in critical condition after her truck collided with a Via Rail train near Montreal
A woman in her 30s is in critical condition after the pick-up truck she was driving was struck by a Via Rail passenger train Monday morning in Quebec's Monteregie region.
What is BORG drinking, and why is it a dangerous trend? An expert explains
If you've been to a party lately and haven't seen someone drinking a BORG, you're likely not partying with college students.
Britain slammed in inquiry for infecting thousands with tainted blood and covering up the scandal
British authorities and the country's public health service knowingly exposed tens of thousands of patients to deadly infections through contaminated blood and blood products, and hid the truth about the disaster for decades, an inquiry into the U.K.'s infected blood scandal found Monday.
The world's best airline is paying staff a bonus of 8 months' salary
Singapore Airlines will reward its employees with a bonus worth nearly eight months of salary, a person familiar with the matter told CNN on Friday.
U.S. Supreme Court rejects an appeal from a Canadian man once held at Guantanamo
The U.S. Supreme Court on Monday rejected an appeal by a Canadian-born former Guantanamo detainee who was seeking to wipe away his war crimes convictions, including for killing a U.S. soldier in Afghanistan.
ICC prosecutor seeks arrest warrant for Israeli and Hamas leaders, including Netanyahu
The chief prosecutor of the International Criminal Court said Monday he is seeking arrest warrants for leaders of Israel and Hamas, including Israeli Prime Minister Benjamin Netanyahu, over actions taken during their seven-month war.
What we know so far about the helicopter crash that killed Iran's president
The apparent crash of a helicopter carrying Iran's president and foreign minister on Sunday sent shock waves around the region.
Red Lobster seeks bankruptcy protection with US$100 million in financing commitments
U.S.-based restaurant chain Red Lobster has filed for Chapter 11 bankruptcy protection in a Florida court after securing $100 million in financing commitments from its existing lenders, the company said on Sunday.