The Nova Scotia Securities Commission has settled a case with Medmira Inc. and Hermes Chan, who admitted to violating Nova Scotia securities laws and acting contrary to the public interest.

Medmira Inc. and Chan failed to conduct required due diligence and maintain adequate precautions to comply with a decision by the commission.

On Nov. 18, 2005, the commission issued a decision permitting Medmira to distribute its common shares without an underwriter registered in Nova Scotia, subject to several conditions. One of the conditions is that the number of common shares distributed by Medmira under an equity line in any 12-month period is not more than 10% of the number of common shares issued and outstanding at the start of the period.

Medmira exceeded the limit for 2007, 2008 and 2009.

Under the order and settlement agreement, the directors and senior officers of Medmira are responsible for ensuring Medmira complies with the decision. Medmira will pay an administrative penalty of $125,000 to the commission. Chan will be reprimanded for his role in Medmira’s failure to comply with the decision, pay an administrative penalty of $7,500 to the commission and, by Dec. 31, complete a course/program for directors of reporting issuers, acceptable to commission staff.

Medmira and Mr.Chan are also ordered to pay $1,000 in costs connected with the investigation and proceedings.

IE