BCC Provides Bi-Weekly Update on Status of Management Cease Trade Order
TORONTO, Aug. 09, 2017 (GLOBE NEWSWIRE) — The Canadian Bioceutical Corporation (the “Company” or “BCC”) (CSE:BCC) (OTC:CBICF) further to missing the July 31, 2017 deadline for filing its audited financial statements for the year ended March 31, 2017 and the management’s discussion and analysis and related Chief Executive Officer and Chief Financial Officer certificates for this period (collectively, the “Required Filings”), the Company requested and was issued a Management Cease Trade Order (“MCTO”) by the Ontario Securities Commission. The MCTO only prohibits management officers W. Scott Boyes and Randall G. Stafford from trading in or purchasing the securities of BCC until two business days after all filings are brought up to date.
Following the acquisition in January 2017 of a group of Arizona incorporated entities that provide material support, including real estate rental, administrative, general management and advisory services, financing and logistics, to medical marijuana businesses licensed under the provisions of the Arizona Medical Marijuana Act, A.R.S. Title 36, Section 28.1 (the “AMMA”), being Health for Life, Inc. (“HFL”) and Soothing Options Inc. (“Soothing Options”), both Arizona not for profit corporations, which directly own, possess or sell marijuana or any marijuana-infused products (the “Business”), the Company has been integrating the Business into the Company’s accounting and operational systems, including those of HFL and Soothing Options, as well as converting the accounting procedures of the Business including those of HFL and Soothing Options, from U.S. GAAP to IFRS.
The Company’s failure to file its Required Filings by the Filing Deadline is due to delays with the integration of the Business into the Company’s accounting and operational systems, including those of HFL and Soothing Options, as well as converting the accounting procedures of the Business including those of HFL and Soothing Options, from U.S. GAAP to IFRS. These delays will cause a short delay in filing of the year end statements of the Company.
BCC confirms that significant progress is being made and, as previously announced, it expects to file the Required Filings on or before August 31, 2017. The MCTO will be in effect until the Required Filings are filed.
Until such time as all filings are up to date, the Company will continue to provide bi-weekly status reports to its shareholders and in so doing, comply with the provisions of the alternative information guidelines set out in Sections 9 and 10 of National Policy 12-203 – Cease Trade Orders for Continuous Disclosure Defaults (“NP 12-203”).
About The Canadian Bioceutical Corporation
BCC, an Ontario corporation, through its wholly owned subsidiaries in the U.S., provides substantial management, staffing, procurement, advisory, financial, real estate rental, logistics and administrative services to two medicinal cannabis enterprises in Arizona operating under the Health for Life (dispensaries) and MPX (high-margin concentrates wholesale) brands. The successful Health for Life (“H4L”) brand operates in the rapidly growing Phoenix Metropolitan Statistical Area (MSA) with a population of 4.6 million people. The award winning Melting Point Extracts (“MPX”) brand is carried by over 40% of Arizona dispensaries.
The Company is supporting development of a third licensed dispensary in Arizona. Additionally, BCC is expanding its U.S. footprint, acquiring additional assets supporting cultivation, production and up to three dispensaries in Massachusetts and three to-be-developed dispensaries and a concentrate production facility in Maryland, as well as a cultivation and production wholesale business in Las Vegas, Nevada. Both Massachusetts and Nevada are implementing legalization of adult use.
The Company also leases a property in Owen Sound, Ontario, for which an application to Health Canada has been made for a cannabis production and sales license. In addition, the Company will continue its efforts related to its legacy nutraceuticals business.