NextBlock Global Limited And Its CEO Alex Tapscott File For Public Settlement Hearing With OSC
NextBlock Global Ltd., a blockchain venture and Alex Tapscott, their CEO have negotiated a settlement with the Ontario Securities Commission over allegations of misleading disclosure.
The securities regulator's staff blamed Tapscott and NextBlock Global Ltd. of making misleading descriptions in slide decks when they were soliciting investors in mid-2017. OSC staff says NextBlock's exhibition included a slide that recorded at least one and as many as four individuals that had not agreed to act as advisors to NextBlock and had not consented to be named in investor decks. Consequentially, the regulator's staff says the private placement raised $20 million from 113 accredited investors who were deprived of the opportunity to make a fully informed investment decision.
NextBlock Global is based in Toronto, Canada, one of the world's leading hubs for blockchain innovation. They are excited to contribute to this growing ecosystem. It is now one of the leading institutional investors in the fast-growing and disruptive new digital asset economy.
Notably, in November of 2017, NextBlock pulled a planned larger public offering, which was to be done through a reverse takeover of another company and raise $100 million, after Forbes magazine published a story in which some of the people listed as advisors to the blockchain venture on slide decks sent to investors were quoted saying they had not agreed to act in that role.
Now, the OSC says:
“As CEO, Tapscott was ultimately responsible for the Investor Decks and took the lead in corresponding with prospective investors. The representation by Tapscott and NextBlock in the Investor Decks that these four prominent figures in the blockchain community were advisors to NextBlock was untrue and misleading.”
The upcoming hearing is on Monday, May 13, 2019, at 10:00 a.m in Ontario. According to the filings, the purpose of the hearing is listed as:
“The purpose of this hearing is to consider whether it is in the public interest for the Commission to approve the Settlement Agreement dated April 9, 2019, between Staff of the Commission and the respondents in respect of the Statement of Allegations filed by Staff of the Commission dated May 8, 2019.”
Essentially, we have to wait another 3 days to see how this 3-year-old case pans out.