LEAGUE Investment Services Inc.

LEAGUE Investment Services Inc.

August 19, 2013 12:56 ET

LEAGUE Investment Services Inc. Comments on Notice of Hearing from British Columbia Securities Commission

VICTORIA, BRITISH COLUMBIA--(Marketwired - Aug. 19, 2013) - On Wednesday, August 14, 2013, the British Columbia Securities Commission ("BCSC") issued a notice of hearing containing allegations against LEAGUE Investment Services Inc.* ("LEAGUE Investments," the "Company"). This notice concerned the adequate disclosure of relationships between different LEAGUE entities during the period between September 2010 and June 2012.

LEAGUE Investments publishes both brochures and a Blue Book, in addition to maintaining a Company website. Within these mediums, the Company periodically promoted the securities of LEAGUE IGW REIT ("IGW REIT"). The notice of hearing alleges that LEAGUE Investments failed to disclose that the Company's owners and sole directors, Adam Gant and Emanuel Arruda, are also both trustees of IGW REIT and the owners, officers, and sole directors of LEAGUE Assets Corp. ("LEAGUE Assets"), IGW REIT's management company.

Specifically, the BCSC's concern is that LEAGUE Investments made "recommendations" that investors buy, sell, or hold securities of IGW REIT through its website, brochures, and Blue Book without disclosing in those documents that LEAGUE Investments was a "connected issuer" of IGW REIT.

LEAGUE Investments has been, and continues to be, committed to ensuring that its clients receive clear and transparent disclosure, including information concerning the relationship between different LEAGUE entities. Disclosure that both LEAGUE Investments and LEAGUE Assets are "connected issuers" of IGW REIT appeared during the relevant period and continues to appear currently. This information is presented in bold type on the cover page of the offering memorandum provided to each investor in IGW REIT. This disclosure also appears in the same fashion in IGW REIT's subscription agreement, a document signed by each IGW REIT's investors. With respect to the alleged absence of similar disclosure on LEAGUE Investment's website and in the brochures and Blue Book, LEAGUE Investments does not believe that such materials contained a "recommendation" to buy, sell, or hold securities of IGW REIT. As a result, LEAGUE Investments believes that these mediums complied with applicable securities laws.

The notice of hearing does not in any way relate to the disclosure made to investors by IGW REIT, whether in the offering documents provided to investors or otherwise. It instead relates to whether LEAGUE Investments made written "recommendations" to buy, sell, or hold securities of IGW REIT through its website, brochures, and Blue Book without including the same disclosure that was contained in both the offering memorandum and related subscription agreement, pieces of documentation were provided to all investors.

LEAGUE Investments is fully committed to complying with applicable securities laws and dedicates significant resources to doing so. LEAGUE Investments will work with the BCSC in a cooperative manner to expeditiously resolve the allegations presented within the notice of hearing.

* Carrying on business in Nova Scotia as LISI Investments.

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