News Release

Released: 10/18/99 Contact:
899-6500 or
(BC only) 1-800-373-6393

Vancouver -- The B.C. Securities Commission has restricted the registration of the mutual fund dealer Canadian Global Investment Corp. and all its salespersons after commission staff conducted an audit of the firm's business.

The mutual fund dealer is prohibited from selling exempt securities and must restrict its business to selling mutual fund securities, the commission panel ruled.

Exempt securities do not afford investors all the protections that are attached to securities sold under a prospectus, including rights of rescission and full disclosure of financial information and investment risk.

The commission also extended temporary cease trade orders against securities of Canadian Global Financial Group Ltd. and Envirosonics Technologies Inc. after the mutual fund dealer and its salespersons had been selling to the public in contravention of the Securities Act.

A hearing has been set for Oct. 26 to consider whether it is in the public interest to further restrict or suspend the registration of the mutual fund dealer and its salespersons. Global was also ordered to deliver to each of its clients a copy of the commission's ruling.

In its ruling the Commission stated that the evidence from the audit raised concerns about the registrations under the Act of Canadian Global Investment, Danny Francis Bilinski, Robert Pierre Lamblin, Lindy Arnot, Don Wilson, Kevin Wall and any other individual registered to trade on behalf of Canadian Global Investment.

The evidence indicated that Canadian Global Investment and its salespersons sold securities contrary to sections 34 and 61 of the Act to clients of Canadian Global Investment in circumstances:

· that bring into question the suitability of the securities for the dealer's clients;
· where money raised from investors of over $5 million had not yet been accounted for;
· where Canadian Global Investment, just over two years ago, entered into a settlement with the Executive Director for failure to maintain proper books and records;
· where the money was invested in the parent of Canadian Global Investment and in its indirect wholly owned subsidiary;
· where for the last financial year of Canadian Global Investment most of its gross commissions were from the sale of exempt securities.

Copies of the commission's ruling are available on the commission's Web site www.bcsc.bc.ca or by contacting Communications Manager Michael Bernard.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities and exchange contracts within the province.