B.C.'s securities regulator is investigating allegations that two Quebec residents illegally bought shares of Vancouver-based Icon Industries Ltd. (TSX-V:ICN), a junior uranium exploration company.
Brenda Leong, executive director of the British Columbia Securities Commission (BCSC), has issued a notice of hearing alleging that Kegam Kevin Torudag and Lai Lai Chan bought shares of Icon based on information that had yet to be disclosed to the market.
The notice alleges that between March 4 and 12, 2007, Torudag and Chan negotiated to sell 85 Quebec mineral claims to Icon.
By March 12, the pair allegedly reached an oral agreement with Icon to assign their option to buy the mineral claims, which Chan owned, to Icon.
The mineral claims option was assigned to Icon on March 13, and news of the agreement was disclosed to the market that afternoon.
The BCSC noted that the allegations have not been proven. Counsel for the executive director will apply to set dates for a hearing into the allegations before a panel of commissioners on July 15.
Icon's closing share price during the past week: $0.35; 52-week high: $1.05; 52-week low: $0.33.