TerraVest Industries Inc experienced a steep decline in its share price on Friday, falling 31.9% after Quebec’s financial regulator, the Autorité des Marchés Financiers (AMF), raised allegations that the company’s executive chairman, Charles Pellerin, tipped relatives and associates ahead of a major acquisition announcement.
The AMF is said to suspect that Pellerin communicated material non-public information regarding TerraVest’s acquisition of American tank trailer maker Entrans before the information was disclosed publicly in March 2025. The regulator applied for a search warrant citing those suspicions and carried out searches at several locations.
Details of the regulator's findings
According to the AMF’s account, nine people connected to Pellerin executed trades in TerraVest shares at times that coincided with or followed closely after communications with him. The regulator contends those transactions deviated from the individuals’ customary trading behavior and generated nearly $6.8 million in theoretical gains.
The AMF’s list of individuals named in the search warrant includes Pellerin’s spouse, Mylène Lavigne; his father, Yvon Pellerin; his sons Maxime, Alexandre and Jérémy; financier Jean-Philippe Choquette; and three businessmen from the Centre-du-Québec region. The regulator estimated that Choquette earned theoretical profits in excess of $3.2 million through trades executed using his spouse, while Yvon Pellerin is alleged to have realized nearly $2.6 million in theoretical gains.
Transaction timeline and valuation metrics cited by the regulator
TerraVest announced its acquisition of Entrans for $780 million in March 2025, a transaction described as the largest in the company’s history. The AMF’s analysis used TerraVest’s share price of $108.71 the day before the Entrans announcement and noted a peak price of $149.76 reached one week later - a move the regulator described as a 38% increase. The AMF also alleges Pellerin had knowledge of the deal as early as December 12, 2024.
Searches related to the inquiry took place on February 11 and February 13. The regulator has not filed criminal or administrative charges at this time.
Corporate stake and market impact
Pellerin chairs TerraVest’s board and holds a stake exceeding 15% of the company, a holding the article states is currently valued at more than $500 million. The market reaction to the AMF’s announced suspicions produced the dramatic intraday drop in TerraVest’s share price.
At present, the situation remains an active regulatory inquiry. The AMF’s allegations and computational framework for theoretical gains are set out in the search warrant and related documents, while no formal charges have been pursued.