TORONTO, Canada – SPoT Coffee (CANADA) LTD. (TSXV: SPP) announces that further to its news release dated June 12, 2020, the Company will be delayed in filing its audited annual financial statements for the year ended December 31, 2019, the related management’s discussion and analysis and certificates of its CEO and CFO (collectively, the “Required Filings”) with Canadian securities regulators until after the prescribed filing deadline.
The additional time during COVID-19 is required to permit the Company and its auditors to complete the work and enquiries required in connection with the audit of the Company’s 2019 financial statements. The Company and its advisors are working diligently to complete such work and the Company intends to make the Required Filings as soon as possible.
In connection with this delay, SPoT Coffee expects that the Ontario Securities Commission (“OSC”) will be issuing a failure-to-file cease trade order (“FFCTO”) against the Company, rather than the management cease trade order (“MCTO”) originally sought by the Company as announced on June 12, 2020.
Despite the exercise of reasonable efforts by the Company in the circumstances, the Company has been advised by the OSC that its application for a MCTO was not successful and that the OSC was of the view that the Company’s circumstances did not constitute a “rare situation” for the exercise of the OSC’s discretion in this regard.
When issued, the Company expects the FFCTO to affect trading in all securities of the Company and to remain in effect until such time as the Company has made the Required Filings. Once the Required Filings are made within 90 days of the date of the FFCTO, the required filings will constitute the Company’s application to have the FFCTO revoked. The Company will issue a further news release when the Required Filings have been made.