CBD Global Issues First Bi-Weekly Report Regarding Management Cease Trade Order

Rhea-AI Summary

CBD Global Sciences Inc. has issued a bi-weekly default status report concerning the delay in filing its audited annual financial statements for 2020. A management cease trade order (MCTO) has been imposed, restricting trading by the CEO and CFO until the filings are complete. The audit is ongoing, and the company expects to file the Annual Filings by June 15, 2021. Additionally, interim financial statements for Q1 2021 will also be delayed. The corporation continues to comply with NP 12-203 by providing regular updates on its default status.

Positive

• The corporation continues to comply with NP 12-203 by providing regular updates, indicating transparency.
• The audit for the Annual Financial Statements is ongoing, showing progress towards resolution.

Negative

• Delayed filing of audited annual financial statements raises concerns over compliance and operational efficiency.
• Management cease trade order restricts trading by key executives, potentially undermining investor confidence.

DENVER, CO, May 14, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- CBD Global Sciences Inc. (CSE: CBDN) (the "Company") provides this initial bi-weekly default status report in accordance with National Policy 12-203 – Cease Trade Orders for Continuous Disclosure Defaults (“NP 12-203”). In the Corporation’s initial default announcement of April 14, 2021 (the “Default Notice”), the Corporation announced the delay in the filing of its audited annual financial statements for the year ended December 31, 2020 (the “Annual Financial Statements”) and related management’s discussion and analysis and CEO and CFO certifications (collectively, the "Annual Filings") by the prescribed filing deadline.

As previously announced in the April 14, 2021 press release of the Corporation, the Corporation applied for and was granted a management cease trade order in respect of the delayed Annual Filings (the “MCTO”) by the Alberta Securities Commission. The MCTO prohibits the chief executive officer and the chief financial officer from trading in the Corporation’s securities for so long as there are filings that are outstanding under applicable securities laws. The MCTO does not affect the ability of the general investing public to trade in the Corporation’s listed common shares.

The audit of the Annual Financial Statements is in progress and the Corporation continues to expect to file the Annual Filings on or before June 15, 2021.

The Corporation confirms that since the Default Notice: (i) there is no material change to the information set out in the Default Notice that has not been generally disclosed; (ii) there has been no failure by the Corporation in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines set out in NP 12-203; (iii) there has not been any other specified default by the Corporation under NP 12-203; and (iv) there is no other material information concerning the affairs of the Corporation that has not been generally disclosed.

Furthermore, the Corporation anticipates that its interim financial statements for the three months ended March 31, 2021, the accompanying management’s discussion and analysis and the related CEO and CFO certifications will not be filed by the prescribed filing deadline and will be filed after the Annual Filings are completed and filed.

The Corporation will continue to comply with the provisions of the alternative information guidelines under NP 12-203 by issuing bi-weekly default status reports in the form of news releases for so long as it remains in default of the filing requirements set out above.

ABOUT CBD GLOBAL SCIENCES INC.

CBD Global Sciences Inc., is a vertically integrated hemp-based CBD producer, extractor, and branding investment vehicle which currently owns two product categories, branded under the name AETHICS (www.aethics.com) and CANNAOIL (www.cannaoilshop.com), which include CBD Oil tinctures (liquid products), CBD capsules, CBD topicals and CBD hydration products.  CBD Global’s hemp-derived CBD extracts are sold through select distributors, brick and mortar retailers, and online.

CBD Global Sciences, through its wholly owned subsidiary, Strasburg Pharms, grows, and operates irrigated land in Colorado that grows hemp with only all-natural Colorado water, soil, sun, and nutrients that is NEVER sprayed with pesticides or chemicals.  Our genetics are hand selected and maintained to present the best cannabinoid profile with extremely high CBD.

For further information, please contact, Investor Relations, (303) 919-2913, info@cbdglobalsciences.com.

NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAS REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to future developments and the business and operations of the Corporation.  Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political, and social uncertainties; and delay or failure to receive board, shareholder, or regulatory approvals.  Readers should not place undue reliance on forward-looking statements.  The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

FAQ

What is CBD Global Sciences' current status regarding its financial filings?

CBD Global Sciences is currently in default for not filing its audited annual financial statements by the deadline, and a management cease trade order is in effect.

When does CBD Global Sciences expect to file its annual financial statements?

The company expects to file its Annual Financial Statements by June 15, 2021.

What does the management cease trade order mean for CBD Global Sciences?

The management cease trade order prohibits the CEO and CFO from trading the company’s securities until the delayed filings are completed.

Will CBD Global Sciences file its interim financial statements on time?

No, the interim financial statements for Q1 2021 will be filed after the Annual Filings are completed.

What are the implications of the delayed financial filings for investors in CBD Global Sciences?

Delayed filings can negatively impact investor confidence and raise concerns regarding the company's operational efficiency.