West High Yield Resources settles with the ASC for misleading disclosure
Dec 20, 2018, 12:28 ET
CALGARY, Dec. 20, 2018 /CNW/ - The Alberta Securities Commission (ASC) has concluded a Settlement Agreement with West High Yield (W.H.Y.) Resources Ltd., in connection with a news release issued by the company in October 2017.
Under the Settlement Agreement, West High Yield (W.H.Y.) Resources admitted that its October 5, 2017 news release was misleading because it failed to include material information. The news release announced an agreement for the sale of W.H.Y.'s assets for $750,000,000. However, it failed to disclose that the proposed purchaser did not have the financial capability to fulfil the agreement on its own, that the proposed purchaser did not have in place third-party financing or a firm commitment to provide financing, and that the agreement was unlikely to proceed in the absence of such financing being obtained.
As part of the Settlement Agreement, W.H.Y. paid the ASC $200,000 and has undertaken to ensure that within one year its officers and directors are provided with training in best practices for public company governance and disclosure.
"Full, candid disclosure of material information is a cornerstone of our capital markets; it's what allows issuers to engage with investors efficiently and effectively. If disclosure becomes selective and inaccurate, investors do not have reliable information on which to make investment decisions," said David Linder, Executive Director. "The ASC takes action to ensure that corporate issuers are held to the regulations that were designed to protect investors."
A copy of the Settlement Agreement is available on the ASC website at albertasecurities.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 Media Inquiries: Hilary McMeekin, Manager, Communications, 403.592.8186; For Investor Inquiries: ASC Public Inquiries, Toll Free 1.877.355.4488
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