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
NDP want Liberals to scrap proposed election date change that could secure pensions for many MPs
The federal New Democrats want to amend the Liberal government's electoral reform legislation to scrap the proposal to push back the vote by a week and consequently secure pensions for dozens of MPs, CTV News has learned.
Supreme Court won't hear appeal in Montreal brainwashing experiments case
The Supreme Court of Canada will not review a Quebec ruling that bars people from suing the U.S. government in Canada over its role in notorious brainwashing experiments at a Montreal psychiatric hospital.
Drive one of these vehicles? You may pay 37 per cent more than average insurance costs due to thefts
As the number of auto theft incidents rises in Canada, so have insurance premiums for drivers, even the ones whose vehicles aren't stolen.
'I'm not wealthy': Ontario senior shocked she owes $40,000 in capital gains after gifting land
An Ontario senior who wanted to help her daughter and grandson eventually own homes one day decided to give them two lots on her property as a gift—but she didn’t know it would eventually cost her tens of thousands of dollars.
National task force not lowering age for routine breast cancer screening to 40
A national task force that provides guidance for primary health-care providers is not lowering the recommended breast cancer screening age to 40, despite urging from several cancer specialists, surgeons and radiologists.
Police arrest 19-year-old suspect after Montreal triple homicide
Police have made an arrest following a deadly street fight that ended with three people killed in Montreal's Plateau-Mont-Royal borough last week.
These are the world's 20 best cities for foodies, according to Time Out
Some travellers pick a city break based on the destination’s cultural offerings. Others eye up cities with buzzy nightlife or opt for a destination hosting a festival or event. But for many vacationers, the most exciting part of any trip is the food.
Video shows driver in Toronto frantically getting out of car being pushed by truck
A CP24 camera caught the moment a driver frantically got out of her car as it was being dragged by a truck on Avenue Road Wednesday afternoon.
opinion What could stunt Trump and the Republicans from winning in November?
In his latest column for CTVNews.ca, Washington political analyst Eric Ham explains how and why Republicans -- up and down the ballot -- are falling far behind Democrats in both fundraising and infrastructure.