Emerge Canada, an ETF provider that is known for producing Canadian-listed versions of Cathie Wood’s Ark exchange-traded funds, last night provided slightly more details on a decision imposed by the Ontario Securities Commission on the company last week.
As part of the enforcement action announced by the Director of the Compliance & Registrant Branch, the company will effect an orderly wind-up or sale of the management contracts it has in place for Emerge ETF’s, the process for which is to be supervised by a manager appointed by the OSC. A plan for this process is said to be in the finalization stage, with further details to be released once completed.
Should approvals be obtained, investors of the now-halted ETF’s will receive prior notice of the wind-up or sale.
Last week, the Commission elected to suspend the registration of Emerge as an investment fund manager, exempt market dealer and portfolio manager following the company failing to maintain required capital levels as dictated by law. The company currently owes Emerge Ark ETF’s $5.5 million, which can’t be paid until it receives $3.4 million that is owed by its American affiliate.
Trading in eleven separate ETF’s managed by Emerge Canada was initially halted last month when the company failed to file timely financial statements, which came after the company was left without an auditor last November when BDO Canada withdrew its services. The company is said to be still looking for an auditor.
Emerge Canada has about $109 million in assets under management, offering clients investment opportunities in Cathie Wood’s suite of Ark Invest ETFs, as well as another five ETFs from the EMPOWR range— a series of portfolios ran by women with a “special focus on promoting sustainability, diversity, and equality within industry.” In fact, Emerge Canada self-identifies as the first Canadian “only woman-owned investment fund firm” itself.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
