Micron Waste Technologies Inc. has attracted the attention of regulators with the U.S. Securities and Exchange Commission and the B.C. Securities Commission.
Trading has been temporarily suspended in the Vancouver-based company's securities due to questions regarding the accuracy and adequacy of information in the marketplace.
“Those questions relate to representations concerning Micron Waste’s acquisition of Covid Technologies Inc., and Covid Technologies’ present ability to rapidly manufacture personal protective equipment to meet the needs of the global medical community during the COVID-19 pandemic,” the SEC said.
The suspensions occurred on May 26, the same day that Micron Waste announced that Covid had plans to manufacture N95 respirators.
A week earlier, Micron Waste declared that it had entered into a definitive purchase agreement for all the shares of Covid. This came after an interim agreement was negotiated on April 20.
"Covid has established manufacturing capacity through the acquisition of state of the art mask making equipment, including the purchase of a FLK120 surgical mask making machine and over 5 tonnes of raw material for mask production," Micron Waste said in a May 19 news release. "Covid has additional cash and manufacturing assets having a replacement value of approximately $500,000. Since the interim agreement, Covid has entered into purchase agreements for approximately 1 million masks to private enterprise."
According to Micron Waste, Covid was going to "relocate its manufacturing facilities to the Delta BC facilities of Micron and be managed by the existing Micron team".
The B.C. Securities Commission order remains in place until June 16.
Micron was founded by its chief technology officer, Bob Bhusan, a former research scientist at the National Research Council of Canada.
The interim president and CEO is Kal Malhi, a retired RCMP drug and organized-crime cop. He's the founder of Bullrun Capital, whose stated mission is to fund scientific advancements so that they can be applied commercially.
Micron Waste developed the Organivore organic-waste digester and the Cannavore cannabis-waste treatment platform.
In 2018, Aurora Cannabis Inc. invested $1.5 million into Micron Waste. And in April 2019, Liberal cabinet minister Carla Qualtrough attended a ribbon-cutting for the Micron Waste Innovation Centre in her riding of Delta.
But in January, Micron Waste suspended development of a cannabis-waste digester system due to "changing market conditions".
As of this writing, Micron Waste shares were valued at $0.205 on the Canadian Securities Exchange.