UPDATE: After the Alberta Securities Commission issued a notice of application earlier this month for an interim cease trade order against short seller Marc Cohodes the application was denied Wednesday Aug. 15.

The Alberta Securities Commission issued a notice of application Thursday for an interim cease trade order against notorious short seller Marc Cohodes after the investor allegedly misrepresented Badger Daylighting Ltd. operational practices on social media.

The ASC said in its notice of application that Cohodes holds a short position in Badger Daylighting, a Calgary-based hydro-excavation company, and that he posted a picture on social media showing a picture of a Badger truck that supported his allegation the company was engaged in illegal toxic dumping. The ASC also said Cohodes is “prohibited” from issuing any statements relating to Badger that “he knows or reasonably ought to know are misleading or untrue.”

“ASC Staff allege that there is evidence that Cohodes made misrepresentations and that he engaged in an act, practice or course of conduct relating to the securities of Badger that he knew or ought reasonably to have known would result in or contribute to an artificial price for those securities,” the Alberta Securities Commission said in a statement.

The commission noted that Cohodes has made “numerous” allegations of wrongdoing by Badger Daylighting for more than a year that coincided with the acquisition of his short position in the company. Cohodes’ allegations against the company haven’t been proven, the commission added.

A lawyer representing Cohodes said in a statement his client considers the regulator's allegations to be "baseless."

"[Cohodes] looks forward to the opportunity to demonstrate the truth of his views on Badger Daylighting, and questions why the Alberta Securities Commission brought this application without first contacting Mr. Cohodes for his evidence regarding Badger Daylighting’s activities," Mark Wiffen of Wiffen Litigation Professional Corporation told BNN Bloomberg via email. 

A spokesperson with Badger Daylighting didn’t return a call seeking comment.

The commission plans to hold a hearing on Aug. 15 to address its application against Cohodes.