Canadian cannabis retailer High Tide Inc. (NASDAQ:HITI) (TSXV:HITI) (FSE: 2LYA) reported that it has missed the deadline of January 31, 2022 to file its audited annual financial statements and management discussion and analysis for the financial years ended October 31, 2021 and 2020, as well as the CEO and CFO certificates.
The delay is due, in part, to personnel challenges relating to the COVID-19 pandemic.
Accordingly, the Calgary-based company will inform the Alberta Securities Commission of its anticipated delay in filing the documents and may apply to the ASC pursuant to Part 4 of National Policy 12-203 – Management Cease Trade Orders for a Management Cease Trade Order pending the filing of the documents, which MCTO will prohibit the company's management from trading in the securities of the company until such time as the documents are filed.
No decision has yet been made by the ASC on this application, the company said.
The company has been working with its auditors to finalize its reconciliation of the effective tax rate and income tax provisions for the year ended October 31, 2021, but to date have been unable to reconcile the deferred tax balance.
High Tide said that it’s confident that the issue will be resolved shortly, but based on the company having over 39 subsidiaries, and completing a number of strategic acquisitions in the period, the efforts are ongoing.
In addition, the company does not expect any balances to be materially changed from those outlined in its press release dated January 27, 2022, with the exception of the income tax expense, net loss, and comprehensive loss with no impact on what the company views the key drivers of the business to be including revenue, gross profit and adjusted EBITDA.
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