Toronto, Ontario--(Newsfile Corp. - January 14, 2019) - Leviathan Cannabis Group Inc. (CSE: EPIC) (the "Company" or "Leviathan") announces a two week update regarding the default announcement pursuant to national policy 12-203 - Management Cease Trade Orders filed December 31, 2018.
The Company was unable to file its audited annual financial statements for the year ended August 31, 2018 before the required filing deadline of December 31, 2018 due to an unforeseen medical emergency with Leviathan's audit committee chair, Mr. David Jarvis and additional factors that contributed to the delay in finalizing the statements.
There are no changes required to be disclosed in reference to section 10 items (a)-(d) of National Policy 12-203 - Management Cease Trade Orders, except the change disclosed below under "Other Material Information". Leviathan's management has spent the last two weeks continuing to work closely with its auditors, MNP, to complete the audit of the financial statements for the year ended August 31, 2018. The Company does not anticipate their filing occurring any later than January 31, 2019. Leviathan has dedicated all necessary financial and human resources to complete its audit. In order to achieve the filing of its audited annual financial statements by January 31, 2019, Leviathan has ensured key personnel attend the auditor's premises over the past 2 weeks and will continue to work alongside MNP for the remainder of the month to further complete the audit.
On January 7, 2019 the Ontario Securities Commission (OSC) granted the Company a management cease trade order under the provisions of National Policy 12-203 - Management Cease Trade Orders to permit the continued trading in the Company's common shares by persons other than directors, officers and insiders of Leviathan.
Other Material Information
On July 3, 2018, the Company announced its intention to acquire all of the issued shares of Pulse Rx Inc., also carrying on business under the business name Pulse Rx LTC Pharmacy ("Pulse Rx") or the "Transaction"), a boutique-style pharmacy providing specialized services to nursing and retirement homes. On January 11, 2019, owing to the results of the due diligence, the Company decided not to pursue the Transaction.
About Leviathan Cannabis
Leviathan plans on executing a series of strategic acquisitions that extend across all vertical markets in Canada and internationally, to support the Company's proprietary brand strategy. This global reach positions the Company to be a leading multi-jurisdictional medical and recreational cannabis enterprise - one that brings together the best cannabis products, brands and expertise from Canada and around the world. The Leviathan portfolio currently comprises Jekyll+Hyde Brand Builders Inc., a marketing services agency specializing in the cannabis sector, and Woodstock Biomed Inc., a late-stage applicant under the ACMPR, which is in the process of retrofitting a substantial greenhouse production facility in Pelham, Ontario.
www.LeviathanCannabis.com
For more information, contact Martin J. Doane, CEO, Leviathan Cannabis Group Inc. at 416.903.6691 or Cheryl Sarnavka, Chief Financial Officer, Leviathan Cannabis Group Inc. at 519-573-9629.
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
Certain information in this press release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "potential", "believe", "intend" or negatives of these terms and similar expressions.
Forward-looking statements are based on certain assumptions, including successful application to be a licensed cannabis producer and seller, expected growth, results from operations, performance, industry trends and growth opportunities. While Leviathan considers these assumptions to be reasonable, based on information currently available, they are inherently subject to significant business, economic and competitive uncertainties and contingencies and they may prove to be incorrect. Readers are cautioned not to place undue reliance on forward-looking statements.
Forward-looking statements also necessarily involve known and unknown risks, including without limitation, risks associated with general economic conditions, adverse industry events, marketing costs, loss of markets, future legislative and regulatory developments, the inability to access sufficient capital on favourable terms, the medical and recreational cannabis industry in Canada in general, income tax and regulatory matters, the ability of Leviathan to execute its business strategies, competition, crop failure, currency and interest rate fluctuations and other risks.
Readers are cautioned that the foregoing is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ from those anticipated. Forward-looking statements are not guarantees of future performance. Except as required by law, Leviathan disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise. Forward- looking statements contained in this news release are expressly qualified by this cautionary statement.
Source: Leviathan Cannabis Group Inc.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
