Kure Technologies Inc V.KUR.H

OTTAWA SUN.........

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OSC investigates UBS Plaintree takeover target probed on trading irregularities By Sean McKibbon, Ottawa Sun THE TAKEOVER target of local wireless network specialist Plaintree Systems has found itself under the watchful eye of the Ontario Securities Commission. Plaintree wants to merge with a wireless networking firm called Unique Broadband Systems Inc. (UBS), which as of yesterday is being investigated by the OSC over insider trading irregularities. Only hours after Plaintree CEO and minority UBS shareholder David Watson proposed UBS investors appoint a new board of directors, the OSC issued a temporary cease trade order against the founder and former president of UBS, Alexander Dolgonas and several associates. MISLEADING REPORTS An OSC press release said Dolgonas and other insiders, "failed to file insider reports in a timely fashion, and/or filed misleading and untrue insider reports." An investigation into the filings is under way and a March 25 hearing will determine if the order remains in effect. "We don't really know what this means to our proposal," said Plaintree CEO David Watson. He said his firm has been trying to explore business opportunities with UBS, but has been stymied because of a court battle between Dolgonas and UBS' current board of directors. As part of a settlement between the board and Dolgonas, UBS is to have a shareholders meeting March 18 to appoint a new board. Watson, a minority shareholder in UBS, wants shareholders to appoint his list of directors and not a rival list proposed by a business associate of Dolgonas. Plaintree, which makes wireless network transponders that use ordinary light signals, wants to merge with UBS or form a partnership. UBS makes network devices that use radio waves which don't have the same requirements for visibility that Plaintree's light-based systems have. PUZZLED BY ORDER Joseph Groia, a lawyer representing Dolgonas in the OSC investigation said he was puzzled by the order which he said relates to allegations over which the current UBS board of directors sued Dolgonas and then settled with him. "If the OSC had some concerns why didn't they raise them then in court?" he said. However the OSC was not an intervenor in the case