BCSC issues halt trade order on Valorem Resources Inc. after unsubstantiated claims online
Vancouver – The British Columbia Securities Commission (BCSC) has ordered a halt to the trading of securities of Vancouver-based Valorem Resources Inc. after unsubstantiated statements about the company appeared on a financial news website, followed by an increase in trading of its shares.
The information on the-financialnews.com made projections about the mining reserves at Valorem’s Black Dog Lake property in Quebec, as well as Valorem’s future share price.
Before the information was posted on or around April 15, Valorem’s 30-day average trading volume was 1.3 million shares. Between April 16 and April 29, this increased to a daily average of 4.4 million shares traded. During that same time period, the average closing price climbed to $0.26 per share from a previous 30-day average of $0.16 per share.
Valorem, which is listed on the Canadian Securities Exchange and the Frankfurt Securities Exchange, stated in an April 16 news release that the company was “the target of false statements being made by [the website] about the nature of our assets.”
The BCSC order against trading of Valorem securities extends until May 21, 2021.
The BCSC may issue a halt trade order when it becomes aware of information, other than information filed under the Securities Act, that may cause unusual trading of an issuer’s securities. BCSC halt trade orders can last no more than 15 business days, although they can be extended.
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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