Whitebox Advisors Llc

Allegations: THE FIRM FAILED TO FILE A NOTICE OF RELEVANT SHORT POSITION IN VIOLATION OF THE NOTICE REQUIREMENT UNDER SECTION 3-14 OF THE NORWEGIAN SECURITIES TRADING ACT. Status: Final Sanction Detail: $10000 PAID ON OR ABOUT FEBRUARY 11, 2022 NO PORTION WAS WAIVED Summary: WHITEBOX SOLD SHARES IN MAY 2020. AT THE TIME OF THE SALE, WHITEBOX HAD RECEIVED AN ALLOCATION OF NEW ISSUE SHARES IN A PUBLIC OFFERING AND CONSIDERED ITSELF IN A LONG POSITION. THE FINANCIAL SUPERVISORY AUTHORITY OF NORWAY DISAGREED FINDING THAT THE NEWLY ISSUED SHARES WERE NOT TRADEABLE AT THE TIME OF THE SALE AND RESULTED IN A NET REPORTABLE SHORT POSITION.

Allegations: IN APRIL 2014, WHITEBOX RECEIVED A CONFIDENTIAL INFORMATION INQUIRY FROM THE SEC IN CONNECTION WITH THE PURCHASE OF SHARES IN A SECONDARY PUBLIC OFFERING WHICH OCCURRED IN 2012. WHITEBOX FULLY COOPERATED WITH THE SEC AND VOLUNTARILY REVIEWED HISTORICAL TRADING ACTIVITY TO IDENTIFY ANY OTHER POTENTIAL INSTANCES OF INADVERTENT VIOLATIONS OF RULE 105. BASED ON THIS REVIEW, WHITEBOX IDENTIFIED FOUR ADDITIONAL INSTANCES IN 2011 AND 2012 WHERE WHITEBOX PARTICIPATED IN A SECONDARY OFFERING DURING A RESTRICTED PERIOD. ALL OF THESE INSTANCES WERE VOLUNTARILY DISCLOSED TO THE SEC. THE VIOLATIONS ALLEGEDLY OCCURRED BETWEEN JANUARY 2011 AND JUNE 2012. RULE 105 GENERALLY PROHIBITS PURCHASING AN EQUITY SECURITY IN A REGISTERED FOLLOW-ON PUBLIC OFFERING IF THE PURCHASER SOLD SHORT THE SAME SECURITY DURING A RESTRICTED PERIOD. THE RULE 105 RESTRICTED PERIOD IS THE SHORTER OF THE PERIOD: (1) BEGINNING FIVE BUSINESS DAYS BEFORE THE PRICING OF THE OFFERED SECURITIES AND ENDING WITH SUCH PRICING; OR (2) BEGINNING WITH THE INITIAL FILING OF A REGISTRATION STATEMENT OR NOTIFICATION ON FORM 1-A OR FORM 1-E AND ENDING WITH THE PRICING. Status: Final Sanction Detail: THE SETTLEMENT INVOLVED THE PAYMENT BY WHITEBOX OF DISGORGEMENT OF $788,779, PREJUDGMENT INTEREST OF $48,553.49 AND A CIVIL MONEY PENALTY OF $365,592.83 (FOR A TOTAL OF $1,202,925.30) TO THE U.S. TREASURY. Summary: IN JULY 2014, WHITEBOX VOLUNTARILY SUBMITTED AN OFFER OF SETTLEMENT WITH RESPECT TO THE FIVE ALLEGED VIOLATIONS OF RULE 105 OF REGULATION M UNDER THE U.S. SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, WITHOUT ADMITTING OR DENYING THE SEC'S ALLEGATIONS. THE SEC ACCEPTED THE OFFER OF SETTLEMENT, AND IMPOSED A CEASE-AND-DESIST ORDER FROM FUTURE VIOLATIONS OF RULE 105. IN DETERMINING TO ACCEPT THE OFFER, THE COMMISSION CONSIDERED REMEDIAL ACTS PROMPTLY UNDERTAKEN BY WHITEBOX AND COOPERATION AFFORDED TO SEC STAFF.