CALGARY, March 25 /CNW/ - The Alberta Securities Commission (ASC) has found that two former directors of Calgary-based The Hear Now Incorporated, Simon Wilby and Michael Sirman, participated in an illegal distribution of The Hear Now securities to Alberta investors. An ASC panel also found that Sirman made misleading or untrue statements to investors concerning the rates of return that they could expect from their investment in The Hear Now.
An ASC panel found that between 2006 and 2008, The Hear Now illegally distributed over $7 million worth of The Hear Now securities to the public using a network of investment clubs. The panel determined this stock distribution network did not meet the requirements outlined for use of the private issuer exemption and was in fact "a thinly disguised sham arrangement" that was "wholly inconsistent with the purpose and spirit of the private company exemption."
The ASC panel set April deadlines for ASC staff, Wilby and Sirman to provide written submissions in relation to what, if any, sanctions should be imposed in this case.
A copy of the decision is posted on the ASC website at www.albertasecurites.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
For further information: For further information: For Media Inquiries: Mark Dickey, Senior Communications Advisor, (403) 297-4481; For Investor Inquiries: ASC Public Inquiries, Toll Free 1-877-355-4488