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 reached an agreement and commitment with Avila Energy Corporation (Ávila) and its (former) CEO Leonard Van Betuw for misleading disclosure in relation to a December 2022 private placement offering under the listed issuer financing exemption. Avila’s shares trade under the symbol “VIK” on the Canadian Stock Exchange.

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

The December 22, 2022 offer document represented that Ávila would use approximately 1.5 million dollars of one 8 million dollars capital increase for data analysis in relation to the activity of Ávila “Vertically integrated energy business.” Ávila contracted with Terra Land Development Ltd., a company of which he was the sole officer and director by Van Betuw brother-in-law, to facilitate data analysis. Contrary to the representations in the offer document, respondents coordinated with Earth Earth to forward most of the 1.5 million dollars intended for data analysis at Micro Turbine Technology BV, a Netherlandscompany based, which had a contractual relationship with Avex Energy Inc., a company owned by Van Betuw.

Ávila and Van Betuw acknowledged in the Settlement Agreement that the offer document misrepresented how Avila intended to use 1.5 million dollars of the proceeds of the offering and that such information would reasonably have been expected to have a significant effect on the market price or value of the securities offered by Ávila. In addition, they acknowledged having violated the Law of securities (Alberta) by submitting a misleading or false certificate to the ASC as part of the offer document.

As part of the Settlement Agreement, the Defendants jointly paid the ASC 60,000 dollars. Ávila has committed to providing training to all of Ávila’s current officers, directors and audit committee members in public company, governance and disclosure obligations. Van Betuw has accepted:

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

• Be prohibited from acting as a director or manager, or participating in investor relations activities, or acting in a management capacity, all in relation to any reporting issuer, for a period of 24 months (the Prohibitions).

• Undertake and complete best practice training for public company obligations, including governance and disclosure, within 24 months of the date of the settlement agreement, otherwise the prohibitions will continue until such completion 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 agency responsible for administering the province’s securities laws. It is tasked with promoting a fair and efficient capital market Alberta and with investor protection. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of from canada capital markets.

SOURCE Alberta Securities Commission

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