The British Columbia Securities Commission (“BCSC“) and Securities and Exchange Commission (“SEC“) have jointly issued temporary cease trade orders in respect of a Vancouver company called Micron Waste Technologies Inc. (“Micron“). The BCSC cease trade order is here; the SEC cease trade order is here. It has been a number of years since a joint cease trade order has been issued by both.
The SEC suspension was issued after Micron hired a number of promotional-type companies on short-term contracts, one for $350,000. It then presumably caused to be promoted, or acquiesced in respect thereof, its stock on representations that it had the ability to rapidly make PPE to meet the needs of the global medical community during Covid-19. On the regulatory side, questions arose regarding the accuracy and adequacy of information in the marketplace about those representations.
According to its website, Micron makes cannabis waste technology solutions, which it states on its website, is a booming industry.
Despite the boom, it appears to be also pivoting into Covid-19 solutions and says that it has acquired a licence to manufacture PPE, which it states will protect against bio hazards, pathogens, and superbugs. This article here describes what bio-hazard protective gear is, and this article here also describes the levels of PPE, including level 4 for bio-hazards which is what Micron suggests it is manufacturing in a week. And this company here, describes PPE for law enforcement safety, dealing with bio-hazard threats in theatre.
In a news release, it states that it bought raw materials from China to make its own PPE and bought machinery from China to make its PPE, and that both are en route to Vancouver. It may not be known to Micron, but the chances of obtaining usable PPE raw materials and usable PPE manufacturing machinery from a government licensed company in China are slim. Literally, the whole world is seeking such things from China and the PPE fraud from China is astronomical at the moment.
According to its corporate filings, Micron is managed by a former RCMP officer who was in drug enforcement.
There is not yet filed on SEDAR, a material change report, or a copy of the material contracts in respect of its change to pivot into the PPE business through a new acquisition and loan arrangement, and in respect of its new licence to manufacture PPE for bio-hazards. Investors will also be able to know more when they can read the material contracts with China for PPE.
According to its financial statements on SEDAR, Micron has $2.5 million in the bank.
It paid $1.5 million to consultants in the past year, and made several payments to companies it says are controlled by its insiders.
The non-arms length consulting contracts have not yet been filed on SEDAR. The contracts for short-term investor relations and promotional services, including the one for $350,000, have not yet been filed on SEDAR either. Its short-term IR and promotional services contracts expire at the end of July 2020. Presumably there is a material event planned between now and the end of July 2020, such that $426,000 had to be paid for IR and promotional services, but what that event is remains unknown.
On the good news side, Micron represented in its SEDAR filings in May 2020, that its new PPE business will be self-funding. Thus it will not need to raise any more money from investors for a very long time.