Organic Garage Announces Corrective Disclosure Pursuant to OSC Review

Rhea-AI Summary

Organic Garage Ltd. (TSXV: OG, OTCQB: OGGFF) announced updates following a review by the Ontario Securities Commission (OSC) regarding its Q1 Filings. The company added essential disclosures to its Q2 filings for the three months ending July 31, 2021, including details on the acquisition of The Future of Cheese Company and compliance with IAS 34. Enhanced discussions on COVID-19's impact and liquidity were also included. These updates lead to the company's listing on the OSC’s public list for refilings and errors.

Positive

• Inclusion of additional disclosure about the acquisition of The Future of Cheese Company in Q2 Filings.
• Enhanced discussions regarding COVID-19 impacts and liquidity in Q2 MD&A.

Negative

• The company has been placed on the OSC's public list for refilings and errors.

TORONTO--(BUSINESS WIRE)-- Organic Garage Ltd. (TSXV: OG) (FRA: 9CW1) (OTCQB: OGGFF), one of Canada’s leading independent grocers, provides an update that further to the review by the Ontario Securities Commission (the “OSC”) of the Company’s continuous disclosure and a subsequent request from OSC staff in connection therewith, the Company has included in its recently filed unaudited condensed interim consolidated financial statements for the three and six months ended July 31, 2021 (the “Q2 FS”), and the corresponding management’s discussion and analysis (the “Q2 MD&A”, together with the Q2 FS, collectively the “Q2 Filings”), certain information (as identified below) that was inadvertently excluded from its unaudited condensed interim consolidated financial statements for the three months ended April 30, 2021, along with a corresponding restated management discussion and analysis (the “Q1 Filings”).

Corrective disclosure was requested by staff of the OSC in connection with its review of the Company's base shelf prospectus. The Q1 Filings will not be refiled, however in accordance with OSC Staff Notice 51-711 (Revised) Refilings and Corrections of Errors (“Notice 51-711”), the Company has made the following corrections in the Q2 Filings that were inadvertently omitted from the Q1 Filings:

• Additional disclosure as required pursuant to IFRS 3 - Business Combinations was included in the Q2 FS related to the previously disclosed acquisition of The Future of Cheese Company; and
• A statement of compliance with IAS 34 - Interim Financial Reporting was included in the Q2 FS.

In addition, enhanced discussion was included in the Q2 MD&A related to the impacts of COVID-19 on the Company as well as short-term and long-term objectives in the sections pertaining to liquidity and capital resources.

As a result of the filing of this disclosure the Company will be placed on the public list of Refiling and Errors in accordance with Notice 51-711.

About Organic Garage Ltd.

Organic Garage (TSXV: OG) (FRA: 9CW1) is one of Canada’s leading independent organic grocers and is committed to offering its customers a wide selection of healthy and natural products at everyday affordable prices. The Company’s stores are in prime retail locations designed to give customers an inclusive, unique and value-focused grocery shopping experience. Founded in 2005 by a fourth-generation grocer, Organic Garage is headquartered in Toronto. The Company is focused on continuing to expand its retail footprint within the Greater Toronto Area. For more information please visit the Organic Garage website at www.organicgarage.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-looking Statements

This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes.

Forward looking statements are subject to both known and unknown risks, uncertainties and other factors, many of which are beyond the control of Organic Garage, that may cause the actual results, level of activity, performance or achievements of Organic Garage to be materially different from those expressed or implied by such forward looking statements. Although Organic Garage has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Organic Garage's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and, except as required by law, neither Organic Garage assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211008005455/en/

Bill Mitoulas

T: (416) 479-9547

E: investor_relations@organicgarage.com

W: www.organicgarage.com

Source: Organic Garage Ltd.

FAQ

What updates did Organic Garage Ltd. release regarding its financial filings?

Organic Garage Ltd. updated its Q2 filings to include previously omitted disclosures from Q1, specifically about the acquisition of The Future of Cheese Company and compliance with IAS 34.

What does the Ontario Securities Commission's review imply for Organic Garage Ltd.?

The OSC's review led to necessary corrections being made in the company’s filings, resulting in the company being placed on the public list for refilings and errors.

How did COVID-19 impact Organic Garage Ltd. according to the latest disclosure?

The company included enhanced discussions in its Q2 MD&A regarding the short-term and long-term impacts of COVID-19 on its operations and liquidity.