Decisions and Freeze and cease trade orders Securities
Montréal – On July 22, 2021, further to a request filed by the Autorité des marchés financiers (the “AMF”) containing interim conclusions, the Financial Markets Administrative Tribunal (the “Tribunal”) issued orders against Efstratios Gavrill (alias Sean Gabriel) (“Gavriil”) and Calixa Capital Partners Inc. (“Calixa”), both of whom acquiesced in the orders being issued against them.
The Tribunal ordered them to cease acting as securities advisers and ordered Gavriil to cease any activity in respect of a transaction in a security subject to the Securities Act.
The orders were issued as an interim preventative measure until a judgment on the merits is handed down, as the AMF’s application contains other conclusions—in particular, the imposition of administrative sanctions on Gavriil and Calixa, the dealer Cape Cove Financial Management Inc. (“Cape Cove”) and certain representatives, directors and officers of Cape Cove.
Appointment of a receiver
On July 8, 2021, the Superior Court allowed an AMF request to order the appointment of a receiver to take charge of the activities of Agro Tech Ventures 1 Inc., Malina Capital Inc., Green CBD Technology Inc., Malina Energy Holdings, Dojo Kaishi Inc. and Calixa, but also Cape Cove.
In seeking the appointment of a receiver, the AMF claimed, among other things, that the companies concerned made misrepresentations, particularly by failing to disclose the presence and involvement of Gavriil to their clients or investors.
Raymond Chabot Administrateur Provisoire inc. has been appointed by the Superior Court as receiver for the companies. Meanwhile, the AMF is continuing its investigation.
It should be noted that Cape Cove was the only company to exercise its right to contest the order. The Superior Court has yet to set a date for the hearing on the contestation.
The Autorité des marchés financiers is the regulatory and oversight body for Québec’s financial sector.
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