Toronto's Theralase Technologies Inc. agreed to settle a case with the Ontario Securities Commission, which involved certain disclosures it made between Nov. 3, 2006, and Aug. 29, 2017.

Under the settlement agreement, Chairman, President and CEO Roger Dumoulin-White will face administrative penalties, which include his resignation from the laser technology company, a C$250,000 fine and restriction from serving certain corporate roles for up to five years.

Theralase said it will not face a financial penalty and that the case did not involve the accuracy of its financial reporting. The company said Chief Scientific Officer Arkady Mandel will act as interim CEO and that its board of directors will undergo a corporate governance course, following the settlement.

The case involved Theralase's failure to update certain forward-looking statements with mandated information, along with making potentially misleading disclosures about the regulatory approvals for its TLC-2000 laser therapy technology.

Specifically, the company noted that its disclosures may have conveyed that regulatory approvals for TLC-2000 extended to its biofeedback or Cell Sensing technology.

The company clarified that the U.S. Food and Drug Administration and Health Canada approved the technology in late 2015 to treat knee pain and that no other applications were made or approved for further indications.

Theralase said it will seek further regulatory approvals for TLC-2000 in 2018.

"With these matters resolved and behind us, we can now direct all of our energy towards executing on the company's primary business strategy," Mandel commented. He added that Dumoulin-White will remain with the company as the newly appointed director of business development.