September 11, 2014
Nova Scotia

Wind farm violated N.S. securities law

BRUCE ERSKINE BUSINESS REPORTER | The Chronicle Herald | September 10, 2014 | thechronicleherald.ca

Glooscap Wind Field Inc. of Windsor has been penalized $3,250 for violating Nova Scotia securities laws.

According to a settlement agreement approved Wednesday, the community economic development corporation accepted responsibility for failing to provide annual financial statements to its shareholders from 2010 to 2012.

Glooscap Wind Field is organized as a community economic development investment fund, a pool of capital formed through the sale of shares to persons within a certain community to operate or invest in a local business.

Community economic development investment fund investments are eligible for provincial tax credits.

According to the settlement agreement, Glooscap Wind Field experienced little or no financial change from 2010 to 2012, and believed there was no need to provide disclosure to its shareholders.

“The respondent acknowledges that its actions were contrary to Nova Scotia securities laws and regrets that it did not comply with its continuous disclosure obligations,” said the settlement agreement.

“The respondent has since provided the shareholders with the required disclosure for the 2013 fiscal year, and has implemented processes to ensure that future disclosure is made in a timely manner.”

Glooscap Wind Field president Tamara Stevens declined comment Wednesday after commissioner Walter Thompson approved the settlement agreement.

Commission enforcement counsel Heidi Schedler said CEDIFs, which must have at least six directors from their defined community, don’t pose a particular challenge for the commission.

But Schedler said they are required, as publicly traded companies, to abide by provincial securities laws.

“What they have to do, they have to do.”

There are 50 active CEDIFs operating in the province, the commission said.

Schedler said providing regular and timely disclosure to shareholders is key to helping investors make informed investment decisions.

“Continuous and timely disclosure protects investors and encourages others to invest money in Nova Scotia companies.”

Glooscap agreed to pay a $2,500 administrative penalty and $750 in costs for the commission investigation and proceeding.

URL to article:  https://www.wind-watch.org/news/2014/09/11/wind-farm-violated-n-s-securities-law/