BCSC alleges Elixir Technology hid mounting losses from investors
According to the notice, that picture did not match Elixir’s books. During the first half of 2020, the company posted revenue of negative $5.5 million, compared with $290,413 over the same period a year earlier, and its trading software was not functioning properly. The former CEO, who managed Elixir’s trading accounts, later described that period as “the whole year was very bad.” The notice alleges that by July 24, 2020, Elixir’s liabilities exceeded its assets by nearly double – $7.6 million in assets against close to $13 million owed to bondholders and preferred shareholders – and that the company knew it could not sustain its promised payouts.
Despite that, the notice alleges Elixir continued soliciting investors for more than two years, raising approximately $14.6 million CAD and $1 million USD from 113 investors between July 2020 and October 2022, after the exempt market dealer that had distributed Elixir’s securities from April 2019 dropped the product in July 2020 over documentation concerns. The dealing representative, who also served as a branch manager at that dealer, allegedly continued referring investors to Elixir and collecting commissions after the dealer cut ties, despite knowing the firm’s true financial position. The notice also alleges Elixir made several additional distributions, totaling roughly $2.6 million CAD to more than a dozen investors, without a prospectus or an available exemption.
Separately, the notice alleges the dealing representative gave false or misleading sworn testimony to Commission investigators in November 2024, overstating the closeness of her personal relationships with three investors she had referred to Elixir under a friends-and-family exemption, and denying that she raised capital for Elixir after the dealer stopped offering it.
None of the allegations have been proven. She remains registered as a dealing representative for exempt market securities in British Columbia and Ontario; the former CEO has not held any registration under the Act since April 2018. The Commission has not yet scheduled a hearing on the amended notice.
