Bernard Callebaut's Papa Chocolat ordered to cease trading
Calgary chocolatier started new business after 1st company went into receivership
The Alberta Securities Commission has issued a cease trade order against Papa Chocolat, the 2½-year-old business of well-known Calgary chocolatier Bernard Callebaut.
The order prohibits all trading or purchase of Papa Chocolat Distribution Inc. securities.
Callebaut founded Papa Chocolat after his first company, which was named after him, fell into receivership in 2010 and he lost control of the business.
"The cease-trade order was issued after [Alberta Securities Commission] staff determined Papa Chocolat Distribution Inc.'s offering memorandum, dated November 26, 2012, was not completed in accordance with Alberta securities laws," a press release from the commission said Monday.
An offering memorandum provides information about the company and its business operations for the purposes of selling shares to investors.
It is less detailed than a company prospectus and is subject to different rules about what must be disclosed in it and how it is filed with the securities commission.
Unlike a prospectus, an offering memorandum need not be approved by the securities commission before it is filed.
Callebaut opened his first store in Calgary in 1983.