A disciplinary hearing panel of the TSX Venture Exchange Inc. has approved a settlement agreement with Ronald Johnston.

Johnston has admitted that he contravened requirements of the Alberta Stock Exchange in April-May 1999, when he enabled distributions of Applied Gaming Inc. securities to five of his clients for which there was no prospectus, and for which Applied Gaming purported to rely on an exemption under the Alberta Securities Act to distribute the securities.

Johnston, who was with Canaccord Capital at the time, placed the five clients in the private placement even though there was no exemption from the prospectus requirements of the Alberta Securities Act on which Applied Gaming could rely to distribute securities to them.

Johnston is required to pay a fine of $12,000 and $7,500 toward the cost of the investigation.