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

CALGARY, AB, Oct. 23, 2024 /CNW/ - The Alberta Securities Commission (ASC) has concluded a Settlement Agreement and Undertaking with Avila Energy Corporation (Avila) and its (former) CEO Leonard Van Betuw for misleading disclosure in connection with a December 2022 private placement offering under the Listed Issuer Financing Exemption. Avila's shares are listed for trading under the symbol "VIK" on the Canadian Securities Exchange.

In the Settlement Agreement, Avila and Van Betuw admitted to misrepresentations in breach of Alberta securities laws by making misleading, untrue or incomplete statements in an offering document that was filed with the ASC on December 22, 2022. The following day, Avila issued a corresponding news release.

The December 22, 2022 offering document represented that Avila would use approximately $1.5 million of an $8 million capital raise for data analysis in connection with Avila's "Vertically Integrated Energy Business." Avila contracted with Terra Land Development Ltd., a company whose sole officer and director was Van Betuw's brother-in-law, to provide the data analysis. Contrary to the representations in the offering document, the respondents instead coordinated with Terra Land to forward the majority of the $1.5 million earmarked for data analysis to Micro Turbine Technology B.V., a Netherlands-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 offering proceeds and that this information would reasonably have been expected to have a significant effect on the market price or value of the securities offered by Avila. They further acknowledged breaching the Securities Act (Alberta) by filing a misleading or untrue 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 has undertaken to provide training for all current officers, directors and audit committee members of Avila in public company obligations, governance and disclosure. Van Betuw has agreed to:

• Resign as an officer and director of any reporting issuer.
• Be prohibited from acting as a director or officer, or engage in investor relations activities, or act in a management capacity, all in relation to any reporting issuer, for a period of 24 months (the prohibitions).
• Pursue and complete training in best practices for 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 completes that training.

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 entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.

SOURCE Alberta Securities Commission

For further information please contact: For media inquiries: Tanja McMorris, Senior Advisor, Communications, [email protected]; For investor inquiries: ASC Public Inquiries, [email protected], Toll Free 1.877.355.4488