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Jun 10, 2020
CALGARY – June 10, 2020 – The Alberta Securities Commission (ASC) has sanctioned Douglas Alexander Whyte and Brian Michael Jones for breaching Alberta securities laws. Whyte, Jones and Imagine Research and Technology Inc. (Imagine) admitted that they illegally distributed shares of Imagine and made materially misleading statements.
From 2014 to 2018, Imagine sold shares to approximately 206 investors, 153 of whom resided in Alberta, raising approximately $1.45 million in total. During this period, Whyte made misleading statements to existing or prospective investors, which Whyte, Jones and Imagine took responsibility for and acknowledged would reasonably be expected to have had a significant effect on the market price or value of the Imagine shares.
While no sanctions were imposed on Imagine, an ASC panel ordered that Whyte and Jones each:
In its decision, the panel noted that Whyte, Jones and Imagine had cooperated in the resolution of the matter in accordance with ASC Policy 15-601 Credit for Exemplary Cooperation in Enforcement Matters. The sanctions imposed were generally in accordance with those jointly proposed by the parties, other than the immediate resignations of Whyte and Jones. In that regard, the panel noted that Whyte had signed an undertaking that he would, by November 16, 2020, take steps to transfer certain intellectual property interests to Imagine and to facilitate the orderly transition of Imagine, including the appointment of new directors and officers. Following the resignations of Whyte and Jones as directors and officers in accordance with the sanction order, the undertaking obliges Whyte to take any other steps necessary by November 16, 2020 to facilitate the orderly transition of Imagine's management and board of directors.
A copy of the decision is is available on the ASC website at albertasecurities.com.
The ASC is the regulatory agency responsible for administering the province’s securities laws. It is entrusted to foster a fair and efficient capital market in Alberta and to protect investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.
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