CALGARY, Aug. 4, 2026 /CNW/ -- The Alberta Securities Commission (ASC) has concluded a Settlement Agreement and Undertaking with Calgary resident Colton Kenneth Smith for breaching Alberta securities laws. Smith engaged in insider trading by purchasing shares of an oil and gas company after receiving confidential information from a former colleague.

Smith was an engineer-in-training at i3 Energy Canada Ltd. (i3 Canada), a subsidiary of publicly traded i3 Energy plc (i3), between September 2020 and November 2023. During that time, he worked with another engineer, Russell Ingram. The two remained friends after Smith left the company and continued to meet socially on occasion.

Between May 30, 2024 and August 14, 2024, Smith met with Ingram several times. During those meetings, Smith learned material, non-public information from Ingram about i3's involvement in an ongoing sale process. This placed Smith in a "special relationship" with i3, as he learned material facts about i3's potential acquisition from Ingram and knew that Ingram was employed by i3 Canada. The ASC previously settled with Ingram for tipping this information.

Smith engaged in insider trading when he purchased i3 shares while knowing material facts that not been generally disclosed. On August 19, 2024, i3's acquisition was publicly announced and the company's share price increased. Smith did not sell his shares, but his potential profit after the announcement was approximately $29,633. He received cash and shares of the company that acquired i3 in exchange for his i3 shares when the acquisition closed in November 2024.

Under the terms of the Settlement Agreement and Undertaking, Smith agreed to:

• pay $65,000 to the ASC, inclusive of costs; and
• not trade in or purchase securities or derivatives for five years, subject to limited exceptions.

"The obligation not to trade on material, non-public information extends beyond corporate insiders," said Cynthia Campbell, Director of Enforcement at the ASC. "Confidential information does not become fair game simply because it is passed to a friend, family member or business associate. Those who receive such information are prohibited from trading on it until that information has been publicly disclosed."

A copy of the Settlement Agreement and Undertaking is available on the ASC website at asc.ca.

The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.

SOURCE Alberta Securities Commission