NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.
TORONTO, April 21, 2023 (GLOBE NEWSWIRE) -- Hempsana Holdings Ltd. (the "Company" or "Hempsana") today announced that it has made an application to the British Columbia Securities Commission to approve a temporary management cease trade order ("MCTO") under National Policy 12-203 - Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-203"), which, if granted, will prohibit trading in securities of the Company by certain insiders of the Company, whether direct or indirect. The Company is unable to file its audited financial statements for the year ended December 31, 2022 and the management's discussion and analysis and related Chief Executive Officer and Chief Financial Officer certificates for this period (collectively, the "Required Filings") before the May 1, 2023 filing deadline (the "Filing Deadline").
The delay in filing the Disclosure Documents is a consequence of this recent change of auditors. In December 2022, the Issuer learned that its former auditors would be increasing its fees significantly and required payment terms beyond the financial ability of the Issuer. Despite undertaking a search for a new auditor, the limited number of available auditing firms available to service cannabis clients posed a challenge. As a result of the short time period to the filing deadline, the Issuer and its current auditor, require more time to complete the outstanding Audited Annual Financial Statements for the year ended December 31, 2022 and other Disclosure Documents referred to above. Notwithstanding the foregoing, the Issuer remains confident in its ability to complete the required filings, but requires a brief extension and has therefore applied for an MCTO. Accordingly, the Issuer has applied for an MCTO under NP 12-203 and will continue to work diligently with its current auditor to complete the Required Filings as soon as possible and will provide updates as appropriate.
The Company anticipates that it will be a position to remedy the default by filing the Required Filings on or before June 1, 2023. The MCTO will be in effect until the Required Filings are filed.
The Company intends to satisfy the provisions of the alternative information guidelines set out in Sections 9 and 10 of NP 12-203 so long as the Required Filings are outstanding.
About Hempsana Holdings Ltd.
The Company's business involves the manufacturing of major and minor cannabinoid derivatives and producing cannabis extracts for use in finished products and other infused consumables. Hempsana's Health Canada Standard Processing Licensed, and EU-GMP compliant facility provides the Company access to wholesale and retail channels in Canada and internationally. Hempsana currently offers a wide range of product formats, including cannabis concentrates, diamonds, tablets, topicals, tinctures, salves, infused pre-rolls, and hemp-based CBD products that are all manufactured and distributed by Hempsana.
Additional Information
For additional information regarding Hempsana, please contact:
Randy Ko
Director and Chief Executive Officer
T: (647) 255-8849
E: randy@hempsana.ca
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian and U.S. securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward-looking statements and information concerning the business and operations of the Company. The forward-looking statements and information are based on certain key expectations and assumptions made by management, including expectations and assumptions concerning the Company. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information. There can be no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to, general economic conditions and the state of the regulatory environment. Please refer to the Company's public record on SEDAR at www.sedar.com for more details on the risks faced by the Company. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Management of the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
