Securities

Montréal - On August 10, 2016, Justice Jean-Pierre Dumais of the Court of Québec for the district of Québec City fined Guy-Paul Gauthier, Michael E. Heller and Beluga Composites Corporation (Beluga) a total of $240,000 in connection with the illegal distribution of securities. Justice Dumais found the respondents guilty on all the charges brought against them by the Autorité des marchés financiers (the "AMF") in its penal proceeding.

Guy-Paul Gauthier, who actively sought investors and played a role in Beluga's financing, was found guilty on seven counts of acting illegally as a securities dealer, seven counts of aiding in a distribution without a prospectus, one count of making a misrepresentation in respect of a transaction in a security and one count of stating that a corporation's securities would be listed on an exchange. Mr. Gauthier was fined a total of $123,000.

Michael E. Heller, the secretary and legal counsel of Beluga, played an active role in the distributions, including by signing subscription forms and authorizing a transfer agent to use his electronic signature on Beluga's share certificates. He was found guilty on eight counts of aiding in a distribution without a prospectus and one count of acting illegally as a securities dealer, and was fined a total of $47,000.

Lastly, Beluga, which manufactures fiber glass inflammable-liquid storage tanks, was found guilty on seven counts of making a distribution without a prospectus and was fined a total of $70,000.

Mr. Heller appealed this decision on September 9, 2016.

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

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