Vancouver-based Internet company Starnet Communications says it faces no criminal charges and is co-operating with authorities after a police raid.
The company specializes in Internet gambling and pornography.
In a release, Starnet says it has never been associated with child pornography.
"Certain media reports have stated or implied Starnet involvement with illegal and reprehensible child pornography," said Mark Dohlen, chief executive officer of Starnet, in a release.
"I state without fear of contradiction that our company eschews this practice and has in place policy that forbids such illegal commerce by this organization."
Police searched the company's head office last Friday as part of an investigation into allegations of illegal gambling and distribution of pornography.
Starnet says it will concentrate on online gaming and will sell what it describes as its, "entertainment business."