Canada’s main securities regulator has extended the trading ban on Chinese timber company Sino-Forest Corp because the firm’s disclosures remain “incomplete”.
The Ontario Securities Commission (OSC) has extended the trading suspension, which was due to expire today, to at least April 16.
Commission vice-chairman Mary Condon said Sino-Forest remained in default of continuous disclosure requirements and the company’s special committee of independent directors had yet to issue a final report on its investigation into fraud allegations.
The OSC halted trading in August, after Sino-Forest’s shares had fallen 74% since June when short seller Muddy Waters LLC said the company had overstated its timber holdings.
Sino-Forest, which has denied the allegations, set up the special committee to investigate the claim. It expects to release its findings by the end of the month.
