Avila Energy Corporation and Leonard Van Betuw settle with ASC for misleading disclosure

CALGARY, AB, October 23, 2024 /CNW/ – The Alberta Securities Commission (ASC) has entered into a settlement agreement and undertaking with Avila Energy Corporation (Avila) and its (former) CEO Leonard Van Betuw for misleading disclosure in relation to a December 2022 private placement offering under a listed issuer’s financing exemption. Avila’s shares trade under the symbol “VIK” on the Canadian Securities Exchange.

In the settlement agreement, Avila and Van Betuw admitted to making false statements in violation of Alberta securities laws by making misleading, false or incomplete statements in an offering document filed with the ASC on December 22, 2022. The next day, Avila issued a corresponding press release.

THE December 22, 2022 the offering document indicated that Avila would use approximately $1.5 million of a 8 million dollars capital increase for data analysis as part of the project “Vertically integrated energy company“Avila contracted with Terra Land Development Ltd., a company whose sole officer and director was Van Betuw’s brother-in-law, to ensure data analysis. Contrary to what is indicated in the offer document, the respondents instead coordinated with Earth Earth transmit the majority of $1.5 million intended for data analysis at Micro Turbine Technology BV, a The NetherlandsToronto-based company, which had a contractual relationship with Avex Energy Inc., a company owned by Van Betuw.

Avila and Van Betuw acknowledged in the settlement agreement that the offering document misrepresented how Avila intended to use $1.5 million of the proceeds of the offering and that this information could reasonably have been expected to have a material effect on the market price or value of the securities offered by Avila. They further admitted to having violated the Securities Act (Alberta) by filing a misleading or false certificate with the ASC as part of the offering document.

As part of the settlement agreement, the respondents jointly paid the ASC $60,000. Avila is committed to providing training to all current Avila officers, directors and audit committee members on public company obligations, governance and disclosure. Van Betuw agreed to:

• Resign as an officer and director of any reporting issuer.

• He is prohibited from acting as a director or officer, engaging in investor relations activities or acting in a management capacity, all in relation to a reporting issuer, for a period of 24 months (prohibitions).

• Continue and complete training on best practices relating to public company obligations, including governance and disclosure, within 24 months of the date of the settlement agreement, failing which the prohibitions will continue until he has completed this training.

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A copy of the settlement agreement and undertaking is available on the ASC website at asc.ca.

The ASC is the regulatory body responsible for administering the province’s securities laws. It is responsible for promoting a fair and efficient capital market by Alberta and with investor protection. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of of Canada capital markets.

SOURCE Alberta Securities Commission

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