BCSC Panel Finds Breach of Cease Trade Order

BCSC News Releases

Filed March 5th, 2026

Detected March 12th, 2026

Summary

The BC Securities Commission (BCSC) panel found that Green Hygienics Holdings Inc. and its former CEO, Ronald Wayne Loudoun, breached a cease trade order by distributing millions of dollars worth of shares and promissory notes. Submissions on sanctions are now required.

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What changed

A BC Securities Commission (BCSC) panel has determined that Green Hygienics Holdings Inc., a Nevada-based reporting issuer in British Columbia, and its former CEO, Ronald Wayne Loudoun, violated a cease trade order (CTO) originally issued in 2014. The company distributed shares and promissory notes totaling approximately $8.5 million between 2019 and 2022, despite the ongoing CTO. Loudoun was found to have personally breached the CTO by authorizing, permitting, and acquiescing in the company's violations, as well as by facilitating the trading of company shares.

The BCSC has directed the parties to make submissions on sanctions, indicating potential penalties for the breaches. Regulated entities, particularly those subject to cease trade orders, should review their compliance procedures to ensure no unauthorized distributions or trades occur. Failure to comply with CTOs can result in significant sanctions, including fines and other disciplinary actions.

What to do next

Review internal controls for compliance with existing cease trade orders.
Ensure all share and promissory note distributions are compliant with BCSC orders.
Prepare for potential sanctions submissions if involved in similar violations.

Penalties

Submissions on sanctions are directed, implying potential fines or other penalties.

Source document (simplified)

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News Release

BCSC panel finds that U.S. company and B.C. man breached cease trade order

### Date:

2026-03-05
- ### Number:

2026/014

Vancouver – A BC Securities Commission (BCSC) panel has found that a Nevada company and its B.C.-based former CEO breached a cease trade order (CTO) by distributing millions of dollars worth of shares and promissory notes.

In 2014, the BCSC’s Executive Director issued a CTO against Green Hygienics Holdings Inc., a Nevada corporation that is a reporting issuer in British Columbia. The order is still in place.

Despite the CTO, Green Hygienics issued treasury shares to 50 people between 2019 and 2021 for a total value of $5.4 million. The company also issued two promissory notes, one in 2020 and one in 2022, worth nearly $3.1 million combined.

By doing so, Green Hygienics breached a CTO issued under B.C.’s Securities Act.

The panel found that Ronald Wayne Loudoun – who was also the company’s president and sole director – authorized, permitted and acquiesced in Green Hygienics’ breach of the CTO and therefore also breached the CTO in the same ways.

In addition, the panel found that Loudoun personally breached the CTO by transferring 250,000 shares of Green Hygienics and by facilitating the trading of company shares to two people.

The panel dismissed allegations that Loudoun personally breached the CTO by transferring 500,000 shares to an individual because the BCSC’s executive director did not establish that he owned the relevant shares.

The respondents did not participate in the liability hearing. The parties have been directed to make submissions on sanctions.

About the BC Securities Commission ( bcsc.bc.ca )

The BC Securities Commission, an independent provincial government agency, strives to make the investment market benefit the public. We set rules, monitor compliance by industry, take action against misconduct, and provide guidance to investors and industry. As guardians of B.C.’s investment market, we’re committed to maintaining a market that is honest, fair, competitive and dynamic, enabling British Columbians to thrive.

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