Decision in Brief: Nova Tech Ltd, Temporary order proceeding, Application to extend, May 1, 2023

In this temporary order proceeding, OSC staff asked the Tribunal to extend a temporary order. That temporary order prohibited Nova Tech Ltd. from buying or selling any securities. It also prohibited anyone else from buying or selling securities of Nova Tech. OSC staff plans to start an enforcement proceeding against Nova Tech and asked the Tribunal to extend the order until the end of that proceeding.

The Tribunal decided to extend the temporary order. OSC staff showed that Nova Tech’s conduct may be harmful to the public interest. Investors need to be protected while OSC staff continue to investigate Nova Tech’s conduct. However, the Tribunal should not extend the order until the end of an enforcement proceeding that does not yet exist. Doing that would mean the order would be in place for an unknown length of time. As a result, the Tribunal extended the temporary order until 10 days after OSC staff starts an enforcement proceeding against Nova Tech, or six months from the date of this decision, whichever comes first.