News Release

Vancouver – The former CEO and former CFO of a Vancouver company have separately agreed to suspensions from participating in the investment market for misrepresenting that the company would retain just a small portion of funds raised through a private placement.

Robert Earle Dawson, the former CEO of BLOK Technologies Inc., and David Malcolm Alexander, the company’s former CFO, had authorized, permitted or acquiesced in the issuance of a June 2018 news release that said BLOK had raised $5.4 million through the private placement.

The news release said the net proceeds would be used for advancing the company’s blockchain investment projects. BLOK did not disclose that it would retain only $947,321 – less than 18 per cent – of the amount raised, because it had already spent or owed $4.5 million on consulting fees.

Alexander knew, and Dawson knew or ought to have known, that BLOK had already spent or owed the consulting fees at the time of the news release. As a result, both of them committed the same misrepresentation as the company.

Both individuals must resign any position they hold as a director or officer of an issuer or registrant, and are temporarily prohibited from becoming or acting as a director or officer of any reporting issuer or registrant, becoming or acting as a registrant or promoter, and advising or otherwise acting in a management or consultative capacity in connection with the securities or derivatives market. Dawson’s prohibitions are for 14 years, and Alexander’s are for three years.

Alexander, who lived in North Vancouver at the time of the misconduct, will pay $25,000 to the BCSC as part of the settlement. Dawson, who lived in Vancouver at the time, isn’t able to pay a financial sanction that would normally be part of a settlement.

BLOK, whose shares traded on the Canadian Securities Exchange, is in the process of being dissolved.

About the B.C. Securities Commission (www.bcsc.bc.ca)

The B.C. 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.

Media Contact:
Brian Kladko
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.