News Release

Vancouver - In a settlement agreement with the British Columbia Securities Commission (BCSC), Kenneth Brooks has admitted that he traded on insider information.   

Brooks is a B.C. resident and the former director of investor relations at LML Payment Systems Inc. LML was a B.C. company whose shares traded on the Nasdaq.

The agreement states that in early 2012, LML decided to solicit bids from prospective purchasers, and that by June 2012, the bidding process was in an advanced stage and LML had received several bids representing a premium on the trading price of LML.

Brooks was aware of the status of the bidding process and on June 27, 2012, he purchased 50,000 LML shares through a private corporation for USD $1.91 per share, for an approximate total of USD $95,000. In July 2012, he purchased an additional 39,420 LML shares for USD $2.01 and USD $2.06 per share, for an approximate total of USD $80,000.

On September 24, 2012, LML announced through a news release that Digital River, Inc. would acquire LML in an all cash transaction valued at USD $3.45 per share, or a total purchase price of approximately USD $102.8 million. Immediately after LML issued the news release, Brooks sold his LML shares through the private corporation for approximately USD $3.35 per share for a profit of approximately CDN $120,000.

For his misconduct, Brooks has agreed to pay CDN $140,000 to the BCSC. He has been ordered to cease trading in, and is prohibited from purchasing, any securities or exchange contracts of any issuer with whom he is in a special relationship for a period of six months.                                            

You may view the settlement agreement on our website, www.bcsc.bc.ca, by typing Kenneth Brooks or 2017 BCSECCOM 331 in the search box. Information about disciplinary proceedings can be found in the Enforcement section of the BCSC website.

Please visit the Canadian Securities Administrators' (CSA) Disciplined List for information relating to persons and companies disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA).

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

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Media Contact:
Alison Walker
604-899-6713

Public inquiries:
604-899-6854 or 1-800-373-6393 (toll free)
inquiries@bcsc.bc.ca  

Learn how to protect yourself and become a more informed investor at www.investright.org