Cantol Limited - s. 144

Headnote

Section 144 -- full revocation of cease trade order upon remedying of defaults.

Statutes Cited

Securities Act, R.S.O. 1990, c. S.5, as am., ss. 127, 144.

IN THE MATTER OF

THE SECURITIES ACT,

R.S.O. 1990 C.S.5, AS AMENDED

(THE "ACT")

AND

IN THE MATTER OF

CANTOL LIMITED

ORDER

(Section 144)

WHEREAS the securities of Cantol Limited ("Cantol") have been subject to a cease trade order (the "Ontario CTO") of the Ontario Securities Commission (the "Commission") pursuant to paragraph 2 of subsection 127(1) of the Act, issued on September 12, 2005 and extended on September 23, 2005, directing that trading in securities of Cantol cease until the Ontario CTO is revoked by the Director;

AND WHEREAS Cantol has applied to the Commission pursuant to section 144 of the Act (the "Application") for a revocation of the Ontario CTO;

AND WHEREAS Cantol has represented to the Commission that:

1. Cantol was incorporated under the laws of the Province of Québec and is a reporting issuer in the Provinces of Québec, Ontario, Alberta and British Columbia.

2. The Ontario CTO was issued because Cantol failed to file and deliver unaudited interim financial statements for the second quarter of the fiscal year 2005 ended June 30, 2005 and the management's discussion and analysis relating to such financial statements (collectively, the "Interim Statements").

3. Except for the Ontario CTO, Cantol is not, to its knowledge, in default of any of the requirements of the Act or the rules and regulations made thereunder.

4. The Interim Statements were not filed in a timely manner with the Commission because at the time, Cantol was involved in a take-over bid and was under the impression that a statutory squeeze out of the minority shareholders could be achieved in time to avoid the filing of the Interim Statements.

5. On September 29, 2005, Cantol filed the Interim Statements with the Commission by filing them on SEDAR.

AND UPON considering the application and the recommendation of staff of the Commission;

AND UPON the Commission being satisfied that to do so would not be prejudicial to the public interest;

IT IS ORDERED, pursuant to section 144 of the Act, that the Ontario CTO be revoked.

DATED at Toronto this 21^st day of February, 2006