Based on chatter in various investment forums throughout the web, it seems as if this is causing some serious confusion. Since the I.R. contact won’t respond to calls for an explanation, I figured I’d do my best with the information I’ve got…
Here’s What You Need to Know
- A Cease Trade Orders, a.k.a. “CTO“, is a “decision issued by a provincial or territorial securities regulatory authority or similar regulatory body against a company or an individual.”
- CTOs are issued for reasons such as failing to meet disclosure requirements or as a result of an enforcement action that involves an investigation of potential wrongdoing.
- The National CTO Database operated by the Canadian Securities Administrators allows us to see more details about which province or provinces issued the CTO against Isodiol and why.
- In Isodiol’s case, the CTO was issued by both Ontario and British Columbia for a failure to file. This is called a a “failure-to-file cease trade order” or “FFCTO.” According to the CTO, “the Issuer has not filed the following periodic disclosure required by the Legislation:
- 1. interim financial report for the period ended June 30, 2018,
- 2. interim management’s discussion and analysis for the period ended
June 30, 2018,
- 3. certification of interim filings for the period ended June 30, 2018
- As a result of the statutory amendments in Alberta, Québec, Nova Scotia, New Brunswick and Manitoba, certain orders issued in other provinces or territories automatically take effect in Alberta, Québec, Nova Scotia, New Brunswick and Manitoba. These provinces will not issue separate orders in these circumstances.
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