Order Issued Over Non-disclosure

The Nova Scotia Securities Commission has reached a settlement with Homburg Invest Inc., which failed to file two news releases and a material change report in a timely matter.

Homburg Invest Inc. is a reporting issuer whose principal regulator is the Nova Scotia Securities Commission and, as a reporting issuer in the Netherlands, is also subject to the oversight of the Netherlands Authority for the Financial Markets (AFM).

On April 29, 2010, the AFM issued an order against to provide information. Homburg did not comply with the order and failed to file a news release until Sept. 24, 2010, almost six months past the filing deadline.

On April 22, 2011, the AFM issued an instruction prohibiting Richard Homburg from acting as director, officer or co-policymaker of Homburg Invest Inc. as well as requiring the company to appoint two officers that reside in the Netherlands. Homburg did not file a news release or Material Change Report about the instruction until May 26 and 30, 2011, respectively, almost one month past the filing deadlines.

In both instances, Homburg Invest Inc. waited until the matter was appealed to the District Court of Rotterdam before filing its required disclosures.

The failure to meet these disclosure requirements violated section 81(1)(b) of the Nova Scotia Securities Act, Part 7.1 of National Instrument 51-102, were acts contrary to a fair and efficient marketplace and were contrary to the public interest.

Under the order and settlement agreement, Homburg Invest Inc. must comply with, and cease contravening, the act. Also, the company must pay administrative penalties of $75,000 and $11,400 in costs of the investigation and proceedings.

The Nova Scotia Securities Commission is the provincial government agency responsible for regulating trading in securities within the province. The order can be viewed at www.gov.ns.ca/nssc/compliancenforce/enforproceedings.asp.