WeedMD Announces Delayed Filing of its 2020 Annual Financial Disclosure
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TORONTO, April 21, 2021 (GLOBE NEWSWIRE) — WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE) (“WeedMD” or the “Company”), a federally licensed producer and distributor of medical-grade cannabis announced today that the filing of its audited annual financial statements, management’s discussion and analysis, and related CEO and CFO certifications for the financial year ended December 31, 2020 (the “Required Filings”), will be delayed beyond the filing deadline of April 30, 2021. The Company will also be postponing its fiscal year-end 2020 conference call, originally scheduled for Friday, April 30, 2021 and is now expected to occur on or before May 28, 2021.
This delay is primarily due to the previously announced resignation of the Company’s outgoing Chief Financial Officer, Lincoln Greenidge, which was tendered on April 13, 2021 and effective April 30, 2021. The Company’s newly appointed and incoming CFO, Beth Carreon is in the process of taking control and oversight of the Required Filings, working with the Company’s appointed auditors during the transition period. This delay will prevent the Company’s officers and directors from preparing WeedMD’s regulatory filings in a timely manner.
The Company’s CEO George Scorsis confirmed today he will sign the CEO certification for the financial year ended December 31, 2020 in alignment with Ms. Carreon once the auditors and Ms. Carreon complete their exercise.
The Company has made an application to the Ontario Securities Commission (the “OSC”) for a management cease trade order (the “MCTO”), which would restrict all trading in securities of the Company, whether direct or indirect, by management of the Company until the Required Filings have been completed. The MCTO would not affect the ability of shareholders who are not insiders of the Company to trade their securities. There is no certainty the MCTO will be granted. If the MCTO is not granted by the OSC, the applicable Canadian securities regulatory authorities could issue a general cease trade order against the Company for failure to file the Required Filings within the prescribed time period.
The Company is working expeditiously with auditors to complete the audit as soon as possible. WeedMD expects the Required Filings to occur prior to May 28, 2021. The Company also intends to satisfy the provisions of the alternate information guidelines of section 10 of National Policy 12-203 – Management Cease Trade Orders as long as it is in default of the Filing Requirements.
The Company confirms that there are no insolvency proceedings against it as of the date of this press release. The Company also confirms that there is no other material information concerning the affairs of the Company that has not been generally disclosed as of the date of this press release.
About WeedMD Inc.
WeedMD Inc. is the publicly traded parent company of WeedMD RX Inc. and Starseed Medicinal Inc., licence holders producing and distributing cannabis products for both the medical and adult-use markets. The Company owns and operates a 158-acre state-of-the-art greenhouse, outdoor and processing facility located in Strathroy, ON as well as a fully-licensed 26,000 sq. ft. Aylmer, ON processing facility, specializing in cannabis extraction. With the addition of Starseed, a medical-centric operator, WeedMD has expanded its multi-channeled distribution strategy. Starseed’s industry-first, exclusive partnership with LiUNA, the largest construction union in Canada, along with employers and union groups complements WeedMD’s direct sales to medical patients. The Company maintains strategic relationships in the seniors’ market and supply agreements with Shoppers Drug Mart as well, as seven provincial distribution agencies where adult-use brands Color Cannabis and Saturday are sold.
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Forward Looking Information This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation which are based upon WeedMD’s current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified by the use of forward-looking terminology such as “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate” and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions “may”, “would” or “will” happen, or by discussions of strategy.
The forward-looking information in this news release is based upon the expectations, estimates, projections, assumptions and views of future events which management believes to be reasonable in the circumstances. Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact. Forward-looking information in this news release include, but are not limited to, statements with respect to internal expectations, expectations with respect to actual production volumes, expectations for future growing capacity and the completion of any capital project or expansions. Forward-looking information necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally; the ability of WeedMD to implement its business strategies; the COVID-19 pandemic; competition; crop failure; and other risks.
Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, WeedMD does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for WeedMD to predict all such factors. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary statements in WeedMD’s disclosure documents filed with the applicable Canadian securities regulatory authorities on SEDAR at www.sedar.com. The risk factors and other factors noted in the disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information.
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