The British Columbia Securities Commission announced that Canada Jetlines Ltd. and its former executive chairman and director, Mark Morabito, have paid CAD 100,000 for failing to immediately disclose material information about a delay to the start of flight operations. In September 2017, Jetlines issued a news release stating it had entered into a letter of intent to lease two aircraft for delivery in April 2018 and was targeting summer 2018 to begin operations. After the aircraft vendor terminated the letter of intent in December 2017, Jetlines later notified the Canada Transportation Agency that it instead sought to commence operations at the end of 2018, which the BCSC characterized as a material change that was not publicly disclosed until a March 13, 2018 news release. The BCSC found Jetlines contravened the continuous disclosure requirements in section 85 of British Columbia’s Securities Act, and that Morabito, by operation of section 168.2(1), authorized, permitted, or acquiesced in the contravention and therefore contravened the same provision.
British Columbia Securities Commission 2025-08-22
British Columbia Securities Commission collects CAD 100,000 from Canada Jetlines and former director for late disclosure of a material change
The British Columbia Securities Commission fined Canada Jetlines Ltd. and its former executive chairman, Mark Morabito, CAD 100,000 for not disclosing a material change about flight operation delays. Jetlines failed to disclose the termination of a letter of intent to lease aircraft until March 2018, violating section 85 of British Columbia’s Securities Act. Morabito authorized or permitted the contravention under section 168.2(1).