Firm fights order
Watchdog's ban on trading unjustified, biotech says
MIKE KING, The Gazette
Published: Thursday, November 08
A small Montreal biotech firm is fighting to rescind an order by the province's securities watchdog to halt public trading in its stock, saying it wasn't involved in or even aware of the alleged wrongdoing perpetrated in its name.
Joseph Daniele, director of Millenia Hope Inc., yesterday told The Gazette that persons unknown to the company misrepresented themselves as company officials.
"The decision rendered by the Bureau de décision et de révision en valeurs mobilières was rendered ex parte without any representatives of Millenia Hope Inc. and Millenia Hope Pharmaceuticals being present," Daniele said. "The two individuals in question who were the cause of this decision had no written or verbal mandates to represent the companies."
An investigation by the Autorité des marchés financier, the province's securities regulator, led to an Oct. 31 hearing before the bureau, a quasi-judicial agency. The AMF testified that Pierre Couture and Claude Yvon Provost met with about 25 potential Millenia investors at a Quebec City restaurant in October to solicit $300 investments for a patent they claimed could be sold to multinational companies for between $100 million and $110 million.
Aside from not being AMF-registered securities brokers, Couture and Provost didn't offer those attending the meeting a prospectus - both violations of the provincial Securities Act that led to them also being prohibited from acting as brokers.
"At no meetings held between the said investors in Quebec City were any employees, representatives or directors of Millenia Hope Inc. or Millenia Hope Pharmaceuticals Inc. present," Daniele said.
"These people acted without our authority and consent."
While stressing he had never heard of Couture until the ruling last week, Daniele recalled meeting Provost once at a company presentation in late spring.
Daniele said both men were being served with formal notices to cease representing Millenia in any way and warned they could be pursued for damages.