HempFusion Provides MCTO Update

Rhea-AI Summary

HempFusion Wellness Inc. (Ticker: CBDHF) has provided an update regarding its management cease trade order (MCTO) issued on April 1, 2022, due to delays in filing its annual financial statements for 2021. The company has received an extension until June 29, 2022, to submit these filings. Progress is ongoing with its audit team, and no material issues have arisen. The MCTO affects the trading of securities by the CEO and CFO only, allowing other shareholders to continue trading. HempFusion plans to issue bi-weekly updates on the status of the filings.

Positive

• Ongoing progress in audit process without material issues.
• Extension granted until June 29, 2022, to complete annual financial filings.

Negative

• Management cease trade order limits trading for CEO and CFO.

DENVER--(BUSINESS WIRE)-- HempFusion Wellness Inc. (TSX:CBD.U) (OTCQB:CBDHF) (FWB:800) (“HempFusion” or the “Company”), a leading health and wellness company offering premium probiotic supplements and products containing CBD, provides an update regarding the previously announced management cease trade order (the “MCTO”) voluntarily requested by the Company and issued by the British Columbia Securities Commission on April 1, 2022 in connection with the Company’s annual financial filings (the “Annual Financial Filings”).

Consistent with the last update, the Company's staff and audit team continue to make progress and are proceeding without any known material issue. However, due to continued capacity challenges faced by the Company’s auditors, the complexity of the audit and the time required to collect the requisite information, the Company applied for and was granted an extension to file its audited financial statements and related management discussion and analysis, related CEO and CFO certifications and annual information form for the year ended December 31, 2021. The Company expects to file the Annual Financial Filings by no later than June 29, 2022.

The Company is providing this status update in accordance with National Policy 12-203 - Management Cease Trade Orders (“NP 12-203”). The Company reports that: (i) there are no changes to the information contained in its default announcement on April 4, 2022 that would reasonably be expected to be material to an investor; (ii) the Company is satisfying and confirms that it intends to continue to satisfy the provisions of the alternative information guidelines set out under NP 12-203 and issue bi-weekly default status reports for so long as the delay in filing the Annual Financial Filings is continuing, which will be issued in the form of a news release; (iii) there has not been any other specified default by the Company under NP 12-203 and no such other default is anticipated; and (iv) there is no material information concerning the affairs of the Company that has not been generally disclosed.

The MCTO relates to trading of securities of the Company by the Chief Executive Officer and Chief Financial Officer of the Company. All other securityholders continue to be able to trade in the securities of the Company in accordance with applicable securities laws.

About HempFusion Wellness Inc.

One of a select few hemp-derived CBD companies that are today fully prepared to meet or exceed expected global guidance, HempFusion Wellness Inc. is a leading health and wellness company whose family of premium consumer brands include HempFusion™, Sagely Naturals™, Apothecanna™, and Probulin Probiotics™, one of the fastest-growing probiotics companies in the United States according to SPINs reported data.

Among the handful of CBD companies who have achieved Self-Affirmed GRAS status, the HempFusion family of brands’ product portfolio comprises 112 SKUs including USDA Organic Certified Tinctures, proprietary FDA Drug Listed Over-The-Counter (OTC) Topicals, probiotic supplements and skin care products, a White Label division and more. With a strong focus on research and development, HempFusion Wellness has 43 products under development.

Available from more than 18,000 US retail locations across all 50 states, HempFusion Wellness products are also available in China, Mexico, Ireland, United Kingdom, United Arab Emirates, South Korea and Canada and may be purchased online from each brand’s website, The Probulin Store on Amazon.com, Alibaba’s Tmall.com, the world’s largest cross-border online marketplace, and a multitude of additional e-commerce sites.

For more information, visit www.hempfusion.com.

Follow HempFusion on Twitter, Facebook and Instagram.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220530005067/en/

Investor Relations:

Eric Balshin

+1 437-826-9911

eric@sophiccapital.com

Company Contact:

Jason Mitchell, N.D.

Chief Executive Officer and Director

ir@hempfusion.com

Source: HempFusion Wellness Inc.

FAQ

What is the status of HempFusion's annual financial filing as of June 2022?

HempFusion has received an extension to file its annual financial statements until June 29, 2022.

What is the Management Cease Trade Order related to HempFusion?

The MCTO was issued due to delays in annual financial filings and restricts trading by the CEO and CFO.

Has HempFusion reported any material issues in its audit?

No material issues have been reported during the ongoing audit process.

How often will HempFusion update investors on the filing status?

HempFusion plans to issue bi-weekly default status reports until the filings are complete.