VANCOUVER, June 5, 2019 /CNW/ - The British Columbia Securities Commission (BCSC) has reached a settlement agreement with a cannabis company that participated in conduct that is abusive to B.C.'s capital markets.
Beleave Inc. is one of several companies named by the BCSC in a November Temporary Order and Notice of Hearing, alleging a scheme to sell shares to a group of purported consultants ("the Purported Consultants").
As part of the settlement agreement, Beleave admitted that it sold $10 million worth of securities through two private placements to the Purported Consultants. The remaining $7.5 million was returned through pre-paid fees to the Purported Consultants, even though they did not provide any services.
The company issued news releases saying it had raised $10 million, despite having paid back most of that to the Purported Consultants. The Purported Consultants immediately resold most of their shares at prices below what they had paid.
When Beleave became aware of the allegations, it took a series of steps, including conducting its own internal investigation, changing its management team, and strengthening its internal controls and management processes. Beleave has also committed to correcting its public disclosure of the 2018 private placements. Beleave has no history of securities misconduct and fully cooperated with the BCSC's investigation.
As a result, the Executive Director has decided that it is not in the public interest for the BCSC to issue orders against the company, stating "Beleave's post-Notice of Hearing conduct is a good example of what we expect from market participants who must address serious public interest concerns."
The BCSC investigation into the scheme is continuing. A BCSC panel last week extended various temporary orders against several of the Purported Consultants and several of the companies that issued shares to them.
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE British Columbia Securities Commission
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