[482] The list of events above, when looked at cumulatively, demonstrates the
prevalence of positive news, rumours and interest in Amaya, independent of
Kitmitto, and much of this having started long before Kitmitto on April 25, 2014
scheduled the Amaya meeting. The meeting took place on April 29, 2014 but the
presentation material did not contain MNPI and there is no evidence Kitmitto
came into possession of Amaya MNPI through that meeting. Continuing after the
April 29, 2014 meeting, there was information, rumours and news online,
independent from Kitmitto. As a result, I find that it is equally likely that Goss,
Vannatta and Christopher (and any of the other respondents) could have relied
on other sources of information including the media articles and internet rumours
listed in paragraph 467 when investing in Amaya. Specifically, I’ve indicated the
public information each of them relied on in the following paragraphs of my
reasons: 489, 599, 600, 607 c., e., l., t., 608 (Goss), 496 and 532 (Vannatta),
506, 570 b., c., e. and f. (Christopher). As a result, I find that Staff has not
shown on a balance of probabilities that it is more likely than not that Kitmitto
tipped these individuals.
Publicly available information relating to Amaya
demonstrates that it was an investment with potential for
growth
[483] In addition, I find that Amaya was not a particularly “risky” investment or stock
to trade. Much focus has been on the fact that the respondents engaged in risky
trading and this supports that Kitmitto must have tipped them. In my view, a
review of the SEDAR documents in evidence (listed in paragraph 467 along with
other information available on the internet) demonstrates that Amaya was a well
established growing company with a promising future.
[484] According to Amaya’s December 31, 2013 “Form 13-502F1 – Class 1 Reporting
Issuers – Participation Fee” that was filed in evidence and on SEDAR, the market
value of Amaya’s listed securities was approximately $133.9 million and market
value of all its securities was approximately $611 million. At December 31, 2013,
it had over $440 million in assets as compared to $349 million the prior year. For
the fiscal year ended December 31, 2013 it had revenues of $154 million, up
from $76 million in 2012; and adjusted net earnings of $15 million in 2013, up
from $10 million in 2012, showing sizeable growth. There was extensive publicly
available information on SEDAR including the Annual Information Form and
Management Discussion and Analysis filings as a senior issuer.
[485] According to its 2013 AIF, “Amaya is engaged in the design, development,
manufacturing, distribution, sale and service of technology-based gaming
solutions for the regulated gaming industry worldwide. Amaya’s objective is to
become a leading provider of technology-based gaming solutions while
maintaining a steadfast commitment to the highest levels of integrity and
responsibility”. An example of one of its casino products, was the popular
“Legend of the White Buffalo”, which Amaya’s May 2, 2014 press release (listed
at paragraph 467 ss.) described as one of its top performing games. Amaya was
a strong player in an industry where there were significant barriers to entry,
including regulatory approvals, capital and leading technology requirements. It
was diversified in terms of operations locations. It had reduced risk due to
having separate subsidiaries in different jurisdictions: Cryptologic (Guernsey),
Cadillac Jack Inc. (Georgia USA) and Amaya (Alberta) Inc. (Alberta, Canada). It
operated in multiple countries in different parts of the world. It had a highly
qualified, international board of directors, with representation from Québec,
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