Tilray Inc. has paid off the debt it owed to Bridging Finance Inc., the Toronto-based private lender thatâs facing allegations of self-dealing and misappropriation of funds.
Bridging Finance s activities have been in the spotlight this month after Ontario Securities Commission (OSC) staff detailed allegations relating to conflicts of interest, misappropriated funds, and inadequate disclosure. That led the regulator to request the Ontario Superior Court to appoint PricewaterhouseCoopers Inc. to manage Bridging Financeâs affairs. None of the claims have been proven in court or before the OSC.
Tilray first took out a loan facility for its Canadian subsidiary with Bridging Finance in Feb. 2020 that would allow the cannabis producer to borrow up to $79.8 million. The loan came with an annual interest rate of prime plus 8.05 per cent and was set to mature next February.
When MJardin Group Inc. needed new capital to help fund its North American cannabis ambitions, it frequently turned to a familiar financier: Bridging Finance Inc.
The Toronto-based private lender s relationship with the beleaguered cannabis producer plays a major role in the scandal that rocked Bay Street over the past week amid allegations against Bridging Finance of ânumerousâ legal and regulatory infractions relating to conflicts of interest, misappropriated funds and inadequate disclosure. None of the claims have been proven in court or before the Ontario Securities Commission; however, the severity of the OSC staffâs investigation thatâs underway led to PricewaterhouseCoopers Inc. being appointed to manage Bridging Financeâs affairs and the suspension of Chief Executive Officer David Sharpe as the lenderâs ultimate designated person late on April 30.
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Immense concern on Bridging Finance allegations: Indigenous Services Minister VIDEO SIGN OUT
Minister of Indigenous Services Marc Miller said he had immense concern after allegations surfaced of mismanagement and self-dealing at Bridging Finance Inc., a Toronto-based lender that catered to First Nations communities. Making sure that Indigenous communities reach and close socio-economic gaps is key and part of that is full participation and eyes wide open in economic development. Obviously, it s a concern throughout the pandemic: communities that have fought tooth and nail for their own source of revenue have seen a huge hit, Miller said late Tuesday during a press conference on improving Indigenous education in Quebec.
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A Toronto-based investment management firm with $2 billion in assets under management has been put into court-approved receivership while the Ontario Securities Commission conducts an investigation into questionable related-party transactions and movement of funds to personal bank accounts.
In an unusual twist, David Sharpe, the chief executive and one of the main operators of Bridging Finance Inc., which raises capital from investors to make loans to corporate borrowers in exchange for limited partnership units, is himself a former mutual fund regulator.
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Try refreshing your browser, or OSC alleges Toronto-based Bridging Finance mismanaged funds, breached numerous laws Back to video