The Ontario Securities Commission has filed charges against Discovery Biotech Inc. and three officers for securities violations.

Discovery and Orest Lozynsky, Robert Vandenberg and Howard Rash are charged with:

  • trading in shares of Discovery without being registered to trade in securities;
  • trading in securities of Discovery without having filed a prospectus with the OSC; and
  • making certain prohibited representations respecting the future value of the securities and the listing of Discovery securities on a stock exchange.

.In addition, Lozynsky, Vandenberg and Rash are charged with authorizing, permitting or acquiescing in the commission of the offences under the Securities Act noted above. The defendants are scheduled to appear in court on July 6 in Toronto.

On June 4, 2003, the OSC issued a temporary cease trade order requiring Discovery and Graycliff Resources Inc. and their employees and agents to cease trading in Discovery securities. That order was extended on June 16, 2003, and on July 17, 2003, and remains in force today.