The Ontario Securities Commission OSC Bulletin October 31, 2019 Volume 42, Issue 44 (2019), 42 OSCB The Ontario Securities Commission administers the Securities Act of Ontario (R.S.O. 1990, c. S.5) and the Commodity Futures Act of Ontario (R.S.O. 1990, c. C.20) The Ontario Securities Commission Published under the authority of the Commission by: Cadillac Fairview Tower Thomson Reuters 22nd Floor, Box 55 One Corporate Plaza 20 Queen Street West 2075 Kennedy Road Toronto, Ontario Toronto, Ontario M5H 3S8 M1T 3V4 416-593-8314 or Toll Free 1-877-785-1555 416-609-3800 or 1-800-387-5164 Contact Centre – Inquiries, Complaints: Fax: 416-593-8122 TTY: 1-866-827-1295 Office of the Secretary: Fax: 416-593-2318 30878028 The OSC Bulletin is published weekly by Thomson Reuters Canada, under the authority of the Ontario Securities Commission. Thomson Reuters Canada offers every issue of the Bulletin, from 1994 onwards, fully searchable on SecuritiesSource™, Canada’s pre-eminent web-based securities resource. SecuritiesSource™ also features comprehensive securities legislation, expert analysis, precedents and a weekly Newsletter. For more information on SecuritiesSource™, as well as ordering information, please go to: http://www.westlawecarswell.com/SecuritiesSource/News/default.htm or call Thomson Reuters Canada Customer Support at 1-416-609-3800 (Toronto & International) or 1-800-387-5164 (Toll Free Canada & U.S.). Claims from bona fide subscribers for missing issues will be honoured by Thomson Reuters Canada up to one month from publication date. Space is available in the Ontario Securities Commission Bulletin for advertisements. The publisher will accept advertising aimed at the securities industry or financial community in Canada. Advertisements are limited to tombstone announcements and professional business card announcements by members of, and suppliers to, the financial services industry. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior written permission of the publisher. The publisher is not engaged in rendering legal, accounting or other professional advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Printed in the United States by Thomson Reuters. © Copyright 2019 Ontario Securities Commission ISSN 0226-9325 Except Chapter 7 ©CDS INC. One Corporate Plaza Customer Support 2075 Kennedy Road 1-416-609-3800 (Toronto & International) Toronto, Ontario 1-800-387-5164 (Toll Free Canada & U.S.) M1T 3V4 Fax 1-416-298-5082 (Toronto) Fax 1-877-750-9041 (Toll Free Canada Only) Email [email protected] Table of Contents Chapter 1 Notices ................................................... 8509 Chapter 13 SROs, Marketplaces, 1.1 Notices ........................................................... (nil) Clearing Agencies and 1.2 Notices of Hearing ......................................... (nil) Trade Repositories ................................. (nil) 1.3 Notices of Hearing with Related 13.1 SROs ............................................................... (nil) Statements of Allegations ............................ (nil) 13.2 Marketplaces .................................................. (nil) 1.4 Notices from the Office 13.3 Clearing Agencies ......................................... (nil) of the Secretary ............................................ 8509 13.4 Trade Repositories ........................................ (nil) 1.4.1 Donna Hutchinson et al. ................................. 8509 1.5 Notices from the Office Chapter 25 Other Information ................................... (nil) of the Secretary with Related Statements of Allegations ............................ (nil) Index ............................................................................ 8637 Chapter 2 Decisions, Orders and Rulings ............ 8511 2.1 Decisions ...................................................... 8511 2.1.1 TokenGX Inc. ................................................. 8511 2.1.2 RBC Global Asset Management Inc. ............. 8522 2.1.3 CI Investments Inc. et al. ................................ 8526 2.2 Orders............................................................ 8535 2.2.1 Donna Hutchinson et al. – s. 127(1) ............... 8535 2.2.2 Boliden AB ...................................................... 8536 2.2.3 Endocan Solutions Inc. – s. 144 ..................... 8540 2.3 Orders with Related Settlement Agreements .................................................... (nil) 2.4 Rulings ........................................................... (nil) Chapter 3 Reasons: Decisions, Orders and Rulings ................................................... 8543 3.1 OSC Decisions .............................................. 8543 3.1.1 Donna Hutchinson et al. – s. 127(1) ............... 8543 3.2 Director’s Decisions ...................................... (nil) Chapter 4 Cease Trading Orders ........................... 8589 4.1.1 Temporary, Permanent & Rescinding Issuer Cease Trading Orders ......................... 8589 4.2.1 Temporary, Permanent & Rescinding Management Cease Trading Orders .............. 8589 4.2.2 Outstanding Management & Insider Cease Trading Orders .................................... 8589 Chapter 5 Rules and Policies.................................. (nil) Chapter 6 Request for Comments .......................... (nil) Chapter 7 Insider Reporting................................... 8591 Chapter 9 Legislation .............................................. (nil) Chapter 11 IPOs, New Issues and Secondary Financings ............................................. 8629 Chapter 12 Registrations ......................................... 8635 12.1.1 Registrants ..................................................... 8635 October 31, 2019 (2019), 42 OSCB Chapter 1 Notices 1.4 Notices from the Office of the Secretary 1.4.1 Donna Hutchinson et al. FOR IMMEDIATE RELEASE October 24, 2019 DONNA HUTCHINSON, CAMERON EDWARD CORNISH, DAVID PAUL GEORGE SIDDERS and PATRICK JELF CARUSO, File No. 2017-54 TORONTO – The Commission issued its Reasons and Decision and an Order in the above named matter. A copy of the Reasons and Decision and Order dated October 23, 2019 are available at www.osc.gov.on.ca. OFFICE OF THE SECRETARY GRACE KNAKOWSKI SECRETARY TO THE COMMISSION For media inquiries: [email protected] For investor inquiries: OSC Contact Centre 416-593-8314 1-877-785-1555 (Toll Free) October 31, 2019 (2019), 42 OSCB 8509 Notices This page intentionally left blank October 31, 2019 (2019), 42 OSCB 8510 Chapter 2 Decisions, Orders and Rulings 2.1 Decisions 2.1.1 TokenGX Inc. Headnote OSC LaunchPad – Application for time-limited relief from the marketplace requirements and prospectus requirement – relief from marketplace requirements to allow the Filer to pilot test a platform that will facilitate the secondary trading of tokens that were issued pursuant to prospectus exemptions – prospectus relief in respect of the secondary trading of tokens – relief granted subject to certain conditions set out in the decision, including investment limits for retail investors – relief from marketplace requirements and prospectus relief is time-limited for pilot testing purposes – relief granted based on the particular facts and circumstances of the application with the objective of fostering capital raising by innovative businesses in Ontario and liquidity for investors – decision should not be viewed as a precedent for other filers in Ontario. Statute cited Securities Act, R.S.O. 1990, c. S.5, as am., ss. 1(1), 53, 74, 138.1, 138.4(7), 138.5, 138.6, 138.7. Instruments cited National Instrument 21-101 Marketplace Operation, s. 15.1. National Instrument 23-101 Trading Rules, s. 12.1. National Instrument 23-103 Electronic Trading and Direct Access to Marketplaces, s. 10. National Instrument 45-102 Resale of Securities, s. 2.5. October 22, 2019 IN THE MATTER OF THE SECURITIES LEGISLATION OF ONTARIO (the “Jurisdiction”) AND IN THE MATTER OF TOKENGX INC. (The Filer) DECISION Background The Ontario Securities Commission (OSC), through the OSC LaunchPad, engages with fintech businesses that have innovative products, services or applications that benefit investors. OSC LaunchPad assists businesses in navigating regulatory requirements and offers flexible approaches for them to fulfill regulatory requirements, including time-limited registration or exemptive relief from securities law requirements to allow them to test their innovative business models. The Filer wishes to create a blockchain-based security token (token) trading platform for the trading among investors (investors) of their tokens that were distributed under prospectus exemptions in order to facilitate capital raising for issuers and to provide liquidity for the investors. The Filer is currently participating in the Creative Destruction Lab’s (CDL) Blockchain Incubator Stream, a 10-month program in which blockchain founders are mentored by veteran entrepreneurs, investors and visionaries in artificial intelligence and blockchain. CDL is an Ontario-based incubator program with locations across Canada and the UK that provides assistance to various seed-stage businesses, including technology businesses with a focus on blockchain applications. Generally, some liquidity and transferability of tokens is desired by investors to access their