Freeze on assets and cessation of activity ordered againt @rgentum Management and Research Corporation and @rgentum Funds

Decisions and Freeze and cease trade orders Securities

Montréal – At the request of the Autorité des marchés financiers (AMF), the Bureau de décision et de révision en valeurs mobilières (BDRVM) issued, on September 19, 2005, a freeze order and an order to cease any activity in respect of securities transactions against @rgentum Management and Research Corporation, Conseillers en valeurs Chabotpage inc. and the family of @rgentum Funds.

In its request to BDRVM, the AMF alleged as follows:

  • Failure to file annual financial statements for the fiscal period ended on December 31, 2004 as well as the interim financial statements for the period ended on June 30, 2005.
  • A substantial decrease in the net assets of @rgentum Funds from $8.6 million on June 30, 2004 to $5.3 million on September 13, 2005. The AMF has received no explanation for the decrease in value.
  • An unspecified number of unitholders.
  • @rgentum Management and Research Corporation has not been co-operative in furnishing the information.
  • Significant increase in management expense ratios.
  • @rgentum’s intention to liquidate the @rgentum Funds. This allegation takes into account the fact that investors cannot make an informed decision because of the lack of information about the financial statements.

Specifically, BDRVM has ordered @rgentum Management and Research Corporation and Conseillers en valeurs Chabotpage inc. not to withdraw, convert to their own use or dispose of any funds, securities or other assets that are in their possession or are under the control or safekeeping of Merchant Capital Group Incorporated, Canadian Imperial Bank of Commerce (Toronto), CIBC Mellon Global Securities Services Company or BMO Bank of Montreal. As well, BDRVM has ordered the family of @rgentum Funds not to dispose of their funds, securities or other assets.

The AMF is pursuing its investigation to determine whether penal proceedings are warranted.

The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.

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