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STRACON Rejects SLC’s Claims in Regulatory Filing, Defends Merger Legality
TORONTO, Ontario – STRACON Group Holding Inc. has firmly rejected allegations made by SLC Holdings Inc. in a recent application to the Ontario Securities Commission, describing them as false claims regarding the company’s corporate structure and ownership following a cross-border business merger.
STRACON (TSX: STG) (BVL: STG), a Toronto-headquartered mining infrastructure and services provider operating across the Americas, faces a challenge from SLC that threatens to halt trading of its shares on public exchanges.
The dispute centers on a long-form amalgamation completed on November 1, 2025, between STRACON Group Holding Inc. and STRACON Holdings S.A. (STRACON Peru). According to STRACON, this merger was properly executed under both Canadian and Peruvian law, specifically Section 183 of the Yukon Business Corporations Act and Section 344 of the Peruvian Companies Law.
Through this transaction, STRACON Peru ceased to exist as a separate entity, with its assets, liabilities, operations, rights, and obligations fully transferred to STRACON Group Holding through its Peruvian branch. This structure was outlined in the company’s prospectus dated December 16, 2025.
On January 22, 2026, SLC Holdings filed its application with the Ontario Securities Commission, alleging that under Peruvian law, STRACON Peru remains separate from STRACON Group Holding, meaning the Canadian-listed company does not actually own the former subsidiaries of STRACON Peru. The application seeks to halt trading in STRACON’s shares pending resolution.
STRACON has categorically dismissed these allegations as meritless, stating that the merger became fully effective on November 1, 2025, for both Canadian and Peruvian legal purposes. The company has indicated it will vigorously contest SLC’s application when it becomes available on the Commission’s website.
This dispute appears to be an extension of earlier legal challenges by SLC. According to STRACON’s statement, SLC had previously initiated litigation against STRACON Peru and formally objected to the merger in Peru on December 5, 2025. STRACON claims it was only served with this objection on December 30, 2025.
The mining services company maintains that SLC has no legal power to reverse the already-completed merger under Peruvian law. STRACON further contends that SLC’s legal actions in Peru, which have apparently motivated the Ontario Securities Commission application, are entirely without merit.
The financial stakes appear significant. STRACON revealed that SLC is seeking damages of US$26.8 million in the Peruvian litigation. The company clarified that under Peruvian law, SLC’s objection to the merger is aimed at securing this financial claim rather than challenging the effectiveness of the merger itself.
STRACON has reaffirmed the accuracy of its prospectus and expressed confidence that its position will be vindicated before the Commission.
The dispute highlights the complex legal challenges that can emerge in cross-border business combinations, particularly those involving multiple regulatory jurisdictions with different legal frameworks. For investors in STRACON, the outcome of these proceedings could have significant implications for share trading and corporate governance.
STRACON Group describes itself as an integrated, engineering-led and technology-enabled mining infrastructure and services group that provides end-to-end solutions across the mining lifecycle. The company works with global mining operators to design, build, operate and maintain mining infrastructure with a focus on sustainable operations.
The Ontario Securities Commission has not yet issued a public statement regarding the application or potential hearings on the matter.
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5 Comments
The mining industry is no stranger to corporate squabbles. I hope cooler heads can prevail here and the two sides can find a resolution that works for all stakeholders.
I’m curious to see how this dispute plays out. Mergers and acquisitions can get messy, especially across borders. Glad to see STRACON is providing transparency around the process they followed.
As an investor, I’ll be watching this closely. Allegations of false claims are serious, so I hope both sides can present their evidence clearly. The mining sector needs stability and credibility.
Interesting development in the mining industry. I’d like to learn more about the details of this merger and why SLC Holdings is challenging it. Seems like STRACON is standing firm on the legality of the transaction.
Jurisdictional disputes between Canada and Peru add an extra layer of complexity. Glad to see STRACON is citing the specific laws they followed. Transparency is key in these situations.