OSC case against Grant Sanders, ex-CEO of cannabis company Instadose Pharma, thrown out over long delay

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In a statement, the OSC declined to comment on allegations that its case against the former Instadose chairman was flawed

A fraud charge against the former chairman and chief executive officer of Instadose Pharma Corp. has been stayed in Ontario court over excessive delays, marking another blow to the Ontario Securities Commission’s enforcement branch.

“The original investigation was flawed, hurried and incomplete. The stay for delay was the legally correct decision but also a fitting end to a very weak case,” he said. Mr. Sanders was charged by the regulator with a quasi-criminal offence in July, 2021. When the OSC identifies wrongdoing, it has the option of prosecuting cases in provincial court or as a regulatory matter. Offences dealt with in provincial court are quasi-criminal and carry larger penalties, including the potential for jail time.

Since the OSC launched its case, Instadose has been taken private, with former shareholders being able to exchange their shares on a one-for-one basis.

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