Flower One Holdings Inc. (OTCQX:FLOOF) (CSE:FONE) (FSE:F11) will have a delay in the filing of its financial statements for the financial year ended December 31, 2021, the accompanying management’s discussion and analysis, and certificates of its CEO and CFO until after the deadline.
In this way cannabis company is joining other industry operators who have recenlty also announced delaying its earnings releases, such as Sundial Growers Inc. (NASDAQ:SNDL), Red White & Bloom (OTC:RWBYF), and YourWay Cannabis Brands Inc. (OTC:YOURF).
“Since joining Flower One at the end of 2021, I have completely re-engineered the organization’s entire finance department – including bringing in new personnel and implementing systems and processes that ensure accuracy, efficiency, and optimal performance. We will continue to diligently work with our auditors to ensure we report our year-end results as soon as possible,” stated Araxie Grant, Flower One’s CFO.
The additional time is required to permit the company’s auditors, MNP LLP, to complete its review and enquiries in connection with the audit of the company’s annual financial statements. The delay is also in part attributable to logistical challenges related to the COVID-19 pandemic in the 2021 calendar year and recent changes to the company’s finance department – including its CFO and overall team. The company and its auditors are working diligently, and the company intends to make the annual filings as soon as possible and it expects to make these filings by no later than June 30, 2022, if not sooner.
In connection with this delay, the company has applied and been approved for a customary management cease trade order relating to the trading by the company’s CEO and CFO in securities of the company from the British Columbia Securities Commission, the company’s principal regulator in Canada. The MCTO should not affect the ability of other shareholders to trade in the securities of the company.
The company intends to comply with the provisions of the alternative information guidelines set out in National Policy 12-203 – Management Cease Trade Orders by providing bi-weekly updates until the annual filings have been made. In the interim, until annual filings are submitted, management and other insiders of the company are subject to a trading black-out policy that reflects the principles in section 9 of National Policy 11-207 – Failure to-File Cease Trade Orders and Revocations in Multiple Jurisdictions.
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