Kolibri Global Energy Inc. Provides Update on 2023 Annual Filings

Rhea-AI Summary

Kolibri Global Energy Inc. announces acceptance of its MCTO application by the BCSC due to filing delay. The Company aims to file its Annual Filings by May 31, 2024, and will issue updates accordingly.

Insights

Financial Analyst

The acceptance of Kolibri Global Energy Inc.'s MCTO by the BCSC due to the delay in filing necessary annual documents suggests potential operational or internal control issues. Investors often view such delays as red flags, possibly indicating underlying problems that could affect the company's financial health. The delay in filing can lead to increased volatility in the company's stock as investors reassess the risk associated with the investment.

While the company has until May 31, 2024, to comply, the interim period will likely be marked by investor caution. The requirement to issue bi-weekly default status reports will provide some transparency, but the lack of full disclosure until the Annual Filings are submitted may deter investment. In the long-term, the company's ability to restore investor confidence will hinge on the nature of the contents of the Annual Filings and any potential revelations of financial discrepancies or operational weaknesses.

Legal Expert

An MCTO is a regulatory instrument that reflects the authorities' response to a company's inability to meet its filing requirements on time. It restricts certain company insiders from trading the company's securities until the required documents are filed. This measure is less severe than a full cease trade order, which would halt all trading of the company's securities and indicates that the regulatory body has not yet found the company's situation to be irredeemable.

Compliance with NP 12-203's alternative information guidelines is important to maintain some degree of market trust. However, the legal implications of not meeting the new deadline could include more severe sanctions, which might affect the company's ability to raise capital or engage in certain business activities. Investors should be aware of these potential legal repercussions and their impact on the company's future operations.

Market Research Analyst

The issuance of an MCTO often leads to a perception of increased risk among investors, which can impact the company's market position relative to its competitors. In a sector where timely and transparent disclosure is key to investor confidence, Kolibri Global Energy Inc.'s delay may lead to a competitive disadvantage. Stakeholders may shift their focus to competitors who demonstrate stronger governance and reliability in meeting regulatory requirements.

It's also important to monitor the industry's response to this news. If competitors capitalize on this by reinforcing their own adherence to regulatory standards, it could lead to a shift in market shares. The company's recovery post-filing will depend on the industry landscape, the response of competitors and the broader market's reception of the delayed financials.

THOUSAND OAKS, Calif.--(BUSINESS WIRE)-- Kolibri Global Energy Inc. (the "Company") announces that its application for a management cease trade order ("MCTO") under National Policy 12-203 – Management Cease Trade Orders ("NP 12-203"), as previously announced in a news release dated March 20, 2024, has been accepted by the British Columbia Securities Commission (the "BCSC"). The MCTO was issued by the BCSC, effective as of April 3, 2024, in connection with the delay by the Company in filing its annual information form, annual audited financial statements, management's discussion and analysis and related officer certifications for the financial year ended December 31, 2023 (collectively, the "Annual Filings").

The Company expects to file the Annual Filings as soon as they are available and by no later than May 31, 2024. The Company will issue a news release once the Annual Filings have been filed. Until the Company files the Annual Filings, it will comply with the alternative information guidelines set out in NP 12-203, including the issuance of bi-weekly default status reports in the form of news releases. The Company confirms as of the date of this news release that there has been no material change in the information contained in the Company’s news release issued March 20, 2024, and there is no other material information concerning the affairs of the Company that has not been generally disclosed.

About Kolibri Global Energy Inc.

Kolibri Global Energy Inc. is a North American energy company focused on finding and exploiting energy projects in oil and gas. Through various subsidiaries, the Company owns and operates energy properties in the United States. The Company continues to utilize its technical and operational expertise to identify and acquire additional projects in oil, gas and clean and sustainable energy. The Company's shares are traded on the Toronto Stock Exchange under the stock symbol KEI and on the NASDAQ under the stock symbol KGEI.

Forward-Looking Statements

Cautionary Note Regarding Forward-Looking Statements: This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "expects", "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding discussions of future plans, estimates and forecasts and statements as to management's expectations and intentions with respect to, among other things, management expectations that the Company will file the Annual Filings within the time period described herein.

These forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things: the Company being unable to file the Annual Filings in the proposed timeframe; recent market volatility; and the state of the financial markets for the Company’s securities.

In making the forward looking statements in this news release, the Company has applied several material assumptions, including without limitation, that: the Company will be able to file the Annual Filings in the proposed time frame.

Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240403214318/en/

Kolibri Global Energy Inc.

Wolf E. Regener +1 (805) 484-3613

Email: wregener@kolibrienergy.com

Website: www.kolibrienergy.com

Source: Kolibri Global Energy Inc.

FAQ

Why did Kolibri Global Energy Inc. apply for a management cease trade order (MCTO)?

Kolibri Global Energy Inc. applied for an MCTO due to a delay in filing its annual information form, audited financial statements, and related documents for the financial year ended December 31, 2023.

When was the MCTO issued by the BCSC effective?

The MCTO issued by the BCSC was effective as of April 3, 2024.

What is the deadline for filing the Annual Filings by Kolibri Global Energy Inc.?

Kolibri Global Energy Inc. aims to file the Annual Filings by no later than May 31, 2024.

How will Kolibri Global Energy Inc. communicate updates until the Annual Filings are filed?

Kolibri Global Energy Inc. will comply with alternative information guidelines, including issuing bi-weekly default status reports in the form of news releases.

Has there been any material change in the Company's affairs since the previous news release?

As of the date of the news release, there has been no material change in the information previously disclosed by Kolibri Global Energy Inc.