News Release

Former CFO accepts investment market suspension and pays $25,000 to BCSC after admitting misrepresentations

  • Date:

    2023-11-30
  • Number:

    2023/99

Vancouver – The former chief financial officer and director of a company has agreed to an investment market suspension and paid $25,000 to the B.C. Securities Commission (BCSC) for failing to disclose that it had spent, or planned to spend, most of the proceeds from a private placement on consultants.

Michael Louis Young was the CFO and a director of Green 2 Blue Energy Corp. – a company listed on the Canadian Securities Exchange – from July 2017 to December 2018.

In an April 2018 news release, Green 2 Blue announced a non-brokered private placement and said that the net proceeds would be used for facility upgrades, equipment purchases and for general working capital. In another news release five days later, the company announced that it had closed the private placement for gross proceeds of about $4.3 million.

Green 2 Blue did not disclose in the first news release its intention to immediately spend most of the private placement proceeds on consultants, and did not disclose in the subsequent news release that it would retain only about 13 per cent of the amount raised, with the remainder being spent on consulting fees. Both failures to disclose were misrepresentations.

Green 2 Blue also filed a material change report containing the same misrepresentations. In so doing, it made a statement or provided information in a record filed under the Securities Act that was false or misleading in a material way.

Young, who lived in Vancouver at the time of the misconduct, knew about Green 2 Blue’s intentions regarding the proceeds at the time of the news releases and material change report, and authorized, permitted or acquiesced in the company’s misconduct.

In addition to paying $25,000, Young must resign any position he currently holds as a director or officer of an issuer or registrant, and is prohibited for three years from becoming or acting as a director or officer of a reporting issuer or registrant, from becoming or acting as a registrant or promoter, and from advising or otherwise acting in a management or consultative capacity in the securities or derivatives markets.

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

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