TORONTO--(BUSINESS WIRE)--On May 10, 2023, the Director of the Compliance & Registrant Regulation branch of the Ontario Securities Commission released a decision to suspend the registration of Emerge Canada Inc. (“Emerge Canada”) in the categories of investment fund manager, portfolio manager and exempt market dealer, because the Director found that Emerge Canada did not maintain the appropriate levels of capital required by applicable laws.
The Director imposed terms and conditions to require Emerge Canada to effect an orderly wind-up or sale of the management contracts of the Emerge ETFs. Emerge Canada’s wind up or sale of the management contracts will be supervised by a manager appointed by the OSC (“OSC Manager”). Emerge Canada is in the process of finalizing a plan to effect such an orderly wind-up or sale and will issue a further press release once such plan has been finalized. Investors in the Emerge ETFs will receive prior notice of the wind-up or sale, provided certain regulatory approvals are sought and obtained. RBC Investor Services continues to act as custodian of the assets of the Emerge ETFs.
The Cease Trade Order announced on April 10, 2023 remains in effect and no assurances can be given on the timing of an audit of the 2022 financial statements of the Emerge ETFs. Emerge Canada has not yet engaged an auditor for the Emerge ETFs.
As per the OSC Decision, once Emerge Canada’s business operations have been effectively concluded, Emerge Canada’s registration will be suspended.
Unitholders are encouraged to consult with their own investment advisors, or to reach out to Emerge Canada’s customer relations team at 1-833-363-7432 or marketing@emergecm.ca.
