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The British Columbia Securities Commission (BCSC) alleges that a Vancouver-based blockchain technology investment company and three of its officers made a misrepresentation about the sales of its shares.
BLOK Technologies Inc. announced in a news release in 2018 that it had raised approximately $5.4 million through a private placement. BLOK did not disclose that it had already spent or owed approximately $4.4 million on consulting fees, and would therefore only retain approximately $950,000 – less than 18 per cent of the amount raised.
The BCSC alleges that BLOK, which traded on the Canadian Securities Exchange, made a statement to investors that it knew, or ought to have reasonably known, was a misrepresentation to investors and violated the Securities Act.
Robert Earle Dawson, BLOK’s president and CEO; James Joseph Hyland, its vice-president and director; and David Malcolm Alexander, its chief financial officer, are alleged to have authorized, permitted or acquiesced in the company’s misrepresentation and therefore also violated the Act.
The BCSC’s allegations have not been proven. The Commission requires the parties involved to appear at the BCSC’s offices on October 13, 2022 if they wish to be heard before a hearing is scheduled.
