DMG Blockchain Solutions Inc., a vertically integrated blockchain and cryptocurrency technology company, announces that it has been advised by the British Columbia Securities Commission (“BCSC”), the Company’s principal securities regulator in Canada, that they have accepted the Company’s application for a management cease trade order (“MCTO”) be granted in respect of the late filing of its audited annual financial statements for the year ended September 30, 2021 and related management’s discussion and analysis (collectively, the “2021 Annual Financial Statements”), and the CEO and CFO certifications to be delivered in respect of the 2021 Annual Financial Statements (the “Certifications”). The MCTO order will be issued by the BCSC on January 31, 2022.
As disclosed in the Company’s press release dated January 26, 2022, the Company was advised by its external auditors (the “Auditors”) that they will require additional time to complete its internal review and audit procedures for the Company’s financial year ended September 30, 2021. Consequently, the Company is not able to file its 2021 Annual Financial Statements and related Certifications by the filing deadline of January 28, 2022 as required under applicable Canadian securities laws. As a result of the MCTO being granted, the Company has until March 31, 2022, being the expiry date of the MCTO, to file the 2021 Annual Financial Statements and related Certifications.
Latest Fintech News: Kestra Financial Partners With AdvicePay to Launch Fee-for-Service Financial Planning
Pursuant to the MCTO, the Chief Executive Officer and the Chief Financial Officer of the Company will not be permitted to trade any securities of the Company unless and until such time as the Company files the 2021 Annual Financial Statements. While the MCTO is in effect, the Company expects that shareholders of the Company will continue to be able to trade the Company’s common shares on the TSX Venture Exchange in the normal course. Until the 2021 Annual Financial Statements are filed, the Company will be required to comply with the provisions of the alternative information guidelines specified in National Policy 12-203 of the Canadian Securities Administrators by issuing bi-weekly default status reports in the form of press releases for so long as the MCTO remains in effect.
The Company will work with the Auditors and dedicate appropriate resources to promptly finalize the 2021 Annual Financial Statements and the related Certifications, so the 2021 Annual Financial Statements and related Certificates can be filed as early as practicable.
Latest Fintech News: First Interstate Bank Transforms Overdraft Practices to Protect Consumers
Under applicable Canadian securities laws, the filing deadline for the Company’s unaudited interim financial statements for the three month period ended December 31, 2021 and related management’s discussion and analysis the (collectively, “Q1 2022 Financial Statements”) is March 1, 2022. Pursuant to the MCTO, in the event that the Company has not filed its 2021 Annual Financial Statements and related Certification on or before March 1, 2022, the filing deadline for the Q1 2022 Financial Statements and related Certifications will fall on the date which is two business days after the date on which the 2021 Annual Financial Statements and related Certifications have been filed.
If the Company is unable to file the 2021 Annual Financial Statements and related Certifications prior to the expiry of the MCTO, it is anticipated that the BCSC will issue a general “failure to file” cease trade order prohibiting the trading by any person of any securities of the Company, including trades in the Company’s common shares made through the TSX Venture Exchange, which would take effect shortly after the expiry of the MCTO and would remain in place until such time as the 2021 Annual Financial Statements and related Certifications have been filed.
The Company will make further announcements with respect to the status of the 2021 Annual Financial Statements and related Certifications as and when appropriate.
Latest Fintech News: Marqeta Expands Global Footprint With New Certifications for Singapore, Philippines, and Thailand
[To share your insights with us, please write to sghosh@martechseries.com]
