News Release

Vancouver - The British Columbia Securities Commission today issued cease trade orders against 53 B.C.-connected companies that trade on U.S. over-the-counter markets for failing to file financial statements.

On Sept.15, 2008, the BCSC implemented BCI 51-509 Issuers Quoted in the U.S. Over-the-Counter Markets. This rule designates “B.C.- connected” OTC Bulletin Board and Pink Sheets companies trading in the U.S., as reporting issuers in British Columbia. Companies that are reporting issuers in B.C. must file financial statements with the commission.

“We are taking an assertive approach to encourage companies to comply with our rules and regulations,” said Martin Eady, BCSC director, corporate finance. “We cease traded these companies because they appear to have a significant connection to B.C. We are also reviewing others to determine whether or not we should take regulatory action against them as well.”

The companies named in the BCSC cease trade orders have not complied with the requirement to file their Sept.30, 2008 interim financial statements by Dec.1, 2008. These financial statements remain outstanding as of Jan.19, 2009.

Following the adoption of the rule, BCSC staff attempted to contact all issuers that appeared to be subject to the rule to advise them of the new requirements. Many have complied. 

The Canadian Securities Administrators publishes a national cease trade order database that is accessible through the enforcement section of the BCSC website, www.bcsc.bc.ca. The companies that the BCSC cease traded today appear on the database. Investors and financial advisers are encouraged to check the database on a regular basis for cease-traded companies. 

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. If you have questions, contact Ken Gracey, media relations, 604-899-6577.

Learn how to avoid investment fraud at the BCSC's investor education website: www.investright.org.