cannabis plant

The CEO of a private cannabis company is facing a quasi-criminal fraud charge from the Ontario Securities Commission (OSC).

The OSC announced that it has charged Grant Sanders, chairman and CEO of Burlington, Ont.-based Instadose Pharma Corp. with one count of fraud.

According to the regulator, Instadose has raised more than $9.4 million from investors.

The OSC alleges “investor funds were diverted to the benefit of Mr. Sanders, his family, and associates” and that “Instadose materially misrepresented the nature of the company’s business.”

The allegations have not been proven.

The first court appearance in the case is scheduled for Aug. 16 in a Brampton, Ont. courthouse.

The OSC is calling for investors who were approached by Sanders, or who actually invested in the company, to contact the regulator.