Former directors and officers of a Toronto-based cannabis company have been accused by Ontario’s securities regulator of defrauding investors.
Canadian Cannabis Corp. said Tuesday it received a Statement of Allegations from the Ontario Securities Commission (OCS).
According to a report by BNN Bloomberg, the OCS accused the company’s former chief executive and two vice presidents of defrauding investors.
Between Jan. 20, 2014 and Aug. 29, 2016, certain former directors and officers of Canadian Cannabis Corp are alleged by the OCS to have engaged in conduct that perpetrated a fraud relating to securities, the company said in a press release.
The OCS further alleges the personnel of failing to comply with sections of the Securities Act.
The regulator said the “company has engaged in conduct that is contrary to the public interest.”
Canadian Cannabis Corp’s current directors are studying the allegations.
The company says it intends to cooperate with the OCS.
A hearing was scheduled to take place later this month.