A number of media publications reported on April 30, 2016, quoting anonymous sources close to the company’s shareholders as saying that “IIROC, the national self-regulatory organization, has started disciplinary action against Management of Kumtor Gold Inc. (Centerra) and suspended trading in its securities in Toronto.” This information is incorrect and requires official elucidation.
True, the Investment Industry Regulatory Organization of Canada (IIROC), in perfect agreement with the Canadian law and Regulations Concerning International Trading in Securities, on April 29, 2016, imposed a temporary suspension of trading in the security of Centerra Gold. IIROC can make a decision to impose a temporary suspension of trading in a security of a publicly listed company, usually in anticipation of a material news announcement by the company. Trading halts are issued based on the principle that all investors should have the same timely access to important company information. IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.
Centerra Gold issued an official news release to notify all stakeholders concerned on the situation at the Bishkek office of Kumtor Gold Company (“KGC”), Centerra’s wholly-owned, Kyrgyz Republic subsidiary, where on the afternoon of April 28, 2016, a search was conducted by the General Prosecutor’s Office and other law-enforcement bodies, the purpose of which appears to be to collect documents relevant to a criminal case relating to alleged financial violations by KGC in connection with past inter-corporate transactions between KGC and Centerra. Mine operations remain unaffected by the GPO’s action.
Following the official news release of the company, trading in the securities of Centerra Gold was resumed in the previous amount as one can ascertain by clicking the link of the official website of the Toronto Stock Exchange on which Centerra’s shares trade under the symbol CG. (http://web.tmxmoney.com/article.php?newsid=86695141&qm_symbol=CG)