A quasi-judicial panel of the Manitoba Securities Commission met Oct. 6 to consider an application from Consolidated Growers and Processors for an exemption under the Securities Act.
CGP, a company promoting the industrial hemp industry in Western Canada, came under investigation earlier this year after questions were raised about shares being sold in the Dauphin, Man., area.
The investigation was continuing last week. It became public last May.
Doug Brown, director of enforcement for the securities commission, said it gathered proof that some shares were sold in contravention of the Securities Act.
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If the securities commission grants an exemption to CGP, the company would essentially be forgiven for not complying with the Securities Act, Brown said. However, the company would have to abide by the legislation during any future share offerings in Manitoba.
The panel reviewing CGP’s application for an exemption did not make a decision last week..
CGP officials did not return calls to the company’s Winnipeg office last week.
Brown said the securities commission investigation shows that CGP has been selling shares in Manitoba for at least a year. The sales effort extended throughout much of the province. It is not yet known what the shares being sold in the Dauphin area would be used for.
In an interview earlier this year, Brown said buyers were asked to sign a form of acknowledgement to buy shares in one or more numbered Manitoba companies.
Brown said it wasn’t clear whether the invested money would be used to build two hemp processing plants at Dauphin or whether it would be spent elsewhere.
