The Ontario Securities Commission OSC Bulletin October 29, 2020 Volume 43, Issue 44 (2020), 43 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 42711460 The OSC Bulletin is published weekly by Thomson Reuters Canada, under the authority of the Ontario Securities Commission. 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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 2020 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 ................................................... 8347 Chapter 12 Registrations ......................................... 8465 1.1 Notices .......................................................... 8347 12.1.1 Registrants ..................................................... 8465 1.1.1 CSA Multilateral Staff Notice 51-361 Continuous Disclosure Review Program Chapter 13 SROs, Marketplaces, Activities for the fiscal years ended March 31, Clearing Agencies and 2020 and March 31, 2019............................... 8347 Trade Repositories ............................... 8467 1.2 Notices of Hearing ......................................... (nil) 13.1 SROs ............................................................... (nil) 1.3 Notices of Hearing with Related 13.2 Marketplaces ................................................ 8467 Statements of Allegations ............................ (nil) 13.2.1 Liquidnet Canada Inc. – Proposed Changes 1.4 Notices from the Office to Broker Blocks Functionality – Notice of of the Secretary ............................................ 8365 Withdrawal ..................................................... 8467 1.4.1 Majd Kitmitto et al. .......................................... 8365 13.3 Clearing Agencies ......................................... (nil) 1.4.2 First Global Data Ltd.et al. ............................. 8365 13.4 Trade Repositories ........................................ (nil) 1.4.3 Derek F.C. Elliott ............................................ 8366 1.5 Notices from the Office Chapter 25 Other Information ................................... (nil) of the Secretary with Related Statements of Allegations ............................ (nil) Index ................................................................ 8469 Chapter 2 Decisions, Orders and Rulings ............ 8367 2.1 Decisions ...................................................... 8367 2.1.1 Baillie Gifford International LLC and Baillie Gifford Overseas Limited ................................ 8367 2.1.2 Next Edge Capital Corp. and Next Edge Bio-Tech Plus Fund ........................................ 8370 2.1.3 Value Partners Investments Inc. and VPI Global Equity Pool .......................................... 8372 2.2 Orders............................................................ 8375 2.2.1 Derek F.C. Elliott – 127(1), 127(10) ................ 8375 2.3 Orders with Related Settlement Agreements .................................................... (nil) 2.4 Rulings ........................................................... (nil) Chapter 3 Reasons: Decisions, Orders and Rulings ................................................... 8377 3.1 OSC Decisions .............................................. 8377 3.1.1 Derek F.C. Elliott – 127(1), 127(10) ................ 8377 3.2 Director’s Decisions ...................................... (nil) Chapter 4 Cease Trading Orders ........................... 8381 4.1.1 Temporary, Permanent & Rescinding Issuer Cease Trading Orders ......................... 8381 4.2.1 Temporary, Permanent & Rescinding Management Cease Trading Orders .............. 8381 4.2.2 Outstanding Management & Insider Cease Trading Orders .................................... 8381 Chapter 5 Rules and Policies.................................. (nil) Chapter 6 Request for Comments .......................... (nil) Chapter 7 Insider Reporting................................... 8383 Chapter 9 Legislation .............................................. (nil) Chapter 11 IPOs, New Issues and Secondary Financings ............................................. 8459 October 29, 2020 (2020), 43 OSCB Chapter 1 Notices 1.1. Notices 1.1.1 CSA Multilateral Staff Notice 51-361 Continuous Disclosure Review Program Activities for the fiscal years ended March 31, 2020 and March 31, 2019 CSA Multilateral Staff Notice 51-361 Continuous Disclosure Review Program Activities for the fiscal years ended March 31, 2020 and March 31, 2019 October 29, 2020 Introduction The Canadian Securities Administrators1 (CSA) have prepared this Staff Notice (Notice) to report on the results of the reviews conducted by the CSA within the scope of its Continuous Disclosure Review Program (CD Review Program). The goal of the program is to improve the completeness, quality and timeliness of continuous disclosure (CD) provided by reporting issuers2 (issuers) in Canada. This program was established to assess the compliance of CD documents with securities laws, including CD rules, and to help issuers understand and comply with their obligations under the CD rules so that investors receive high quality disclosure to assist them in making informed investment decisions. In this Notice, we summarize the key findings and outcomes of the CD Review Program for the fiscal year ended March 31, 2020 (fiscal 2020) and the fiscal year ended March 31, 2019 (fiscal 2019). Appendix A - Financial Statement, MD&A and Other Regulatory Deficiencies (Appendix A) describes common deficiencies and includes some disclosure examples to help issuers address these deficiencies and to illustrate our expectations. Given the impact of the COVID-19 pandemic (COVID-19) on the Canadian and global economy and potential impact on issuers’ operating performance, financial position, liquidity and future prospects, Appendix A includes guidance on reporting the impact of COVID-19. For further details on the CD Review Program, see CSA Staff Notice 51-312 (revised) Harmonized Continuous Disclosure Review Program. Results for Fiscal 2020 and Fiscal 2019 Issuers selected for a CD review (full or issue-oriented review (IOR)) are identified using a risk-based and outcomes-focused approach using both qualitative and quantitative criteria. IORs are focused on a specific accounting, legal or regulatory issue, an emerging issue or industry, implementation of recent rules or areas where we believe there may be a heightened risk of potential investor harm. A review may also stem from general monitoring of our issuers through news releases, media articles, complaints and other sources. During fiscal 2020, a total of 583 CD reviews (fiscal 2019 – 514 CD reviews) were conducted with IORs consisting of 73% of the total (fiscal 2019 - 70%). The nature of an IOR will impact the time spent and outcome obtained from the review. The following charts outline the focus areas of the IORs conducted: 1 This Notice is being published in all jurisdictions except British Columbia. It includes the results of the reviews conducted by the British Columbia Securities Commission (BCSC) as a result of its participation in the CD Review Program. The BCSC will advise of their approach after the final provincial interregnum period is over in mid-November. 2 In