Guy Cardinal pleads guilty

Decisions and Freeze and cease trade orders Securities

Montréal – Guy Cardinal pleaded guilty on September 14, 2007 to four charges brought against him by the Autorité des marchés financiers (AMF). Judge Sylvie Desmeules of the Court of Québec (Criminal and Penal Division), in the judicial district of St-François, ordered him to pay a fine in the amount of $5,000 plus costs, which is more than the minimum amount stipulated by law.

Guy Cardinal was charged with failing to report, within the required 10-day period, changes in his control over the securities of Shermag Inc., where he is an insider. He faced four charges for violating section 97 of the Securities Act, with reference to section 174 of the Securities Regulation.

Insiders are required to report, within 10 days of the event, any change in their control over the securities of a reporting issuer via the System for Electronic Disclosure by Insiders (SEDI) at This link will open in a new window, thereby giving all investors access to the information within a reasonable time period.

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

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