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Flower One Holdings Inc. (CSE: FONE, OTCQX: FLOOF) has announced a delay in filing its financial statements for the year ended December 31, 2021. The delay is due to ongoing audits by MNP LLP and challenges related to the COVID-19 pandemic. CFO Araxie Grant emphasized the reengineering of the Finance department for improved accuracy and efficiency. The Company expects to file these statements by June 30, 2022, and has received a management cease trade order affecting only its CEO and CFO, not other shareholders.
Positive
None.
Negative
Delay in filing annual financial statements may raise concerns about transparency.
Management changes in the Finance department could indicate instability.
LAS VEGAS--(BUSINESS WIRE)--
Flower One Holdings Inc. (“Flower One” or the “Company”) (CSE: FONE) (OTCQX: FLOOF) (FSE: F11), the leading cannabis cultivator and producer in Nevada, announces today that it will have a delay in the filing of its financial statements for the financial year ended December 31, 2021, the accompanying management’s discussion and analysis, and certificates of its CEO and CFO (collectively, the “Annual Filings”) until after the deadline.
“Since joining Flower One at the end of 2021, I have completely reengineered the organization’s entire Finance department – including bringing in new personnel and implementing systems and processes that ensure accuracy, efficiency, and optimal performance. We will continue to diligently work with our auditors to ensure we report our year-end results as soon as possible,” said Araxie Grant, Flower One’s CFO.
The additional time is required to permit the Company’s auditors, MNP LLP, to complete its review and enquiries in connection with the audit of the Company’s annual financial statements. The delay is also in part attributable to (i) logistical challenges related to the COVID-19 pandemic in the 2021 calendar year and (ii) recent changes to the Company’s finance department – including its CFO and overall team. The Company and its auditors are working diligently, and the Company intends to make the Annual Filings as soon as possible and it expects to make these filings by no later than June 30, 2022, if not sooner.
In connection with this delay, the Company has applied and been approved for a customary management cease trade order (the “MCTO”) relating to the trading by the Company’s CEO and CFO in securities of the Company from the British Columbia Securities Commission, the Company’s principal regulator in Canada. The MCTO should not affect the ability of other shareholders to trade in the securities of the Company.
The Company intends to comply with the provisions of the alternative information guidelines set out in National Policy 12-203 – Management Cease Trade Orders by providing bi-weekly updates by way of press release until the Annual Filings have been made. In the interim, until Annual Filings are submitted, management and other insiders of the Company are subject to a trading black-out policy that reflects the principles in section 9 of National Policy 11-207 – Failure to-File Cease Trade Orders and Revocations in Multiple Jurisdictions.
About Flower One Holdings Inc.
Flower One is the largest cannabis cultivator, producer, and full-service brand fulfillment partner in the state of Nevada. By combining more than 20 years of greenhouse operational excellence with best-in-class cannabis operators, Flower One offers consistent, reliable, and scalable fulfillment to a growing number of industry-leading cannabis brands (Cookies, Kiva, Old Pal, Heavy Hitters, Lift Ticket’s, The Clear, HUXTON, and Flower One’s leading in-house brand, NLVO, and more). Flower One currently produces a wide range of products from flower, full-spectrum oils, and distillates to finished consumer packaged goods, including a variety of: pre-rolls, concentrates, edibles, topicals, and more for top-performing brands in cannabis. Flower One’s Nevada footprint includes the Company’s flagship facility, a 400,000 square-foot high-tech greenhouse and 55,000 square-foot production facility, as well as a second site with a 25,000 square-foot indoor cultivation facility and commercial kitchen. Flower One has built an industry-leading team focused on making high-quality cannabis accessible to all.
The Company’s common shares are traded on the Canadian Securities Exchange under the Company’s symbol “FONE”, in the United States on the OTCQX Best Market under the symbol “FLOOF” and on the Frankfurt Stock Exchange under the symbol “F11”. For more information, visit: https://flowerone.com.
Cautionary Note Regarding Forward-Looking Information
Statements in this press release that are not statements of historical or current fact constitute “forward-looking information” within the meaning of Canadian securities laws and “forward-looking statements” within the meaning of United States securities laws (collectively, “forward-looking statements”). Such forward-looking statements involve known and unknown risks, uncertainties, and other unknown factors that could cause the actual results of the Company to be materially different from historical results or from any future actual results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms “believes,” “belief,” “expects,” “intends,” “anticipates,” “potential,” “should,” “may,” “will,” “plans,” “continue” or other similar expressions to be uncertain and forward-looking.
Forward-looking statements may include, without limitation, the timing of the Company making the Annual Filings; the expected absence of an impact on the ability of other securityholders to trade in the Company’s securities and the Company’s intention to comply with the provisions of the alternative information guidelines; the Company’s ability to implement systems and processes within the organization’s Finance department that ensure accuracy, efficiency, and optimal performance; the Company’s ability to provide bi-weekly updates by way of press release; the Company’s leadership as a cannabis cultivator, producer, manufacturer, distributor, innovator and full-service brand fulfillment partner; and the production of a wide range of products for the nation’s top-performing brands.
The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement, the “Cautionary Statement regarding Forward-Looking Information” section contained the Company’s management’s discussion and analysis for the three and nine months ended September 30, 2021 (the “MD&A”). All forward-looking statements in this press release are made as of the date of this press release. The forward-looking statements contained herein are also subject generally to assumptions and risks and uncertainties that are described from time to time in the Company’s public securities filings with the Canadian securities commissions, including the Company’s MD&A. Although Flower One has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended.
Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this press release are made as of the date of this release. Flower One disclaims and does not undertake any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR THEIR REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
