PlantX Announces Cease Trade Order
PlantX Life Inc. has received a cease trade order (CTO) from the British Columbia Securities Commission due to delays in filing required financial documents. The CTO affects trading of the company’s securities in Canada and replaces a previous management cease trade order. The company is currently working to complete its annual and interim filings, expected by November 15, 2022. Despite these setbacks, PlantX emphasizes that it is not undergoing insolvency proceedings.
- The company is actively working with auditors to complete required filings.
- PlantX is not facing insolvency proceedings, which suggests financial stability.
- The issuance of the CTO indicates ongoing financial reporting issues.
- Delays in filing audited financial statements and interim reports could impact investor confidence.
VANCOUVER, BC, Oct. 19, 2022 /PRNewswire/ - PlantX Life Inc. (CSE: VEGA) (Frankfurt: WNT1) (OTCQB: PLTXF) ("PlantX" or the "Company") announced today that, the British Columbia Securities Commission (the "BCSC") has issued a general "failure to file" cease trade order pursuant to National Policy 11-207 – Failure to File Cease Trade Orders and Revocations in Multiple Jurisdictions dated October 18, 2022 (the "CTO"). The CTO was issued as a result of the Company's failure to file its audited annual financial statements, management's discussion and analysis and related certifications for the fiscal year ended March 31, 2022 (collectively, the "Annual Filings") before the prescribed deadline of July 29, 2022, and the Company's failure to file its financial statements, management's discussion and analysis and related officer certifications for the three-month period ended June 30, 2022 (collectively, the "Interim Filings") before the prescribed deadline of August 29, 2022, as required under applicable securities laws.
The Company's 2022 audit currently remains ongoing and as previously disclosed, is experiencing delays caused by the need to complete the previously announced restatement of the Company's audited, annual financial statements for the fiscal year ended March 31, 2021 and the implementation of additional internal control procedures as a result of the restatement process.
The CTO, amongst other things, replaces the management cease trade order, which was issued by the BCSC on August 2, 2022 and extended until October 14, 2022, in respect to the Chief Executive Officer and the Chief Financial Officer of the Company, which prohibited those officers from trading in the Company's securities until after the Company cured its disclosure defaults.
The CTO prohibits the trading by any person of any securities of the Company in each jurisdiction in Canada in which the Company is a reporting issuer, including trades in the Company's common shares made through the Canadian Securities Exchange for as long as the CTO remains in effect. However, the CTO provides an exception for beneficial securityholders of the Company who are not currently (and who were not as of October 18, 2022) insiders or control persons of the Company and who sell securities of the Company acquired before October 18, 2022, if both of the following criteria are met: (i) the sale is made through a "foreign organized regulated market", as defined in section 1.1 of the Universal Market Integrity Rules of the Investment Industry Regulatory Organization of Canada and (ii) the sale is made through an investment dealer registered in a jurisdiction of Canada in accordance with applicable securities legislation.
The Company is working diligently with the auditors to complete and file the Annual Filings and the Interim Filings and expects to have the audit of the Annual Filings completed, and the Annual Filings filed, no later than November 15, 2022. The Company expects the Interim Filings to be filed concurrently with or shortly after the filing of the Annual Filings. There is no assurance that the Company will be able to remedy its filing default and have the CTO lifted in a timely manner or at all.
The Company is not currently subject to any insolvency proceedings and there is no other material information concerning the affairs of the Company that has not generally been disclosed.
As the digital face of the plant-based community, PlantX's platform is the one-stop shop for everything plant-based. With its fast-growing category verticals, the Company offers customers across North America more than 5,000 plant-based products. In addition to offering meal and indoor plant deliveries, the Company currently has plans underway to expand its product lines to include cosmetics, clothing and its own water brand – but the business is not limited to an e-commerce platform. The Company uses its digital platform to build a community of likeminded consumers and, most importantly, to provide education. Its successful enterprise is being built and fortified on partnerships with the top nutritionists, chefs and brands. The Company eliminates the barriers to entry for anyone interested in living a plant-based lifestyle and thriving in a longer, healthier and happier life.
The Company website is http://investor.PlantX.com/.
Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as "may," "will," "expect," "likely," "should," "would," "plan," "anticipate," "intend," "potential," "proposed," "estimate," "believe" or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen, or by discussions of strategy. The forward-looking information contained herein includes, without limitation, the anticipated filing date of the Annual Filings and Interim Filings.
By its nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate; that assumptions may not be correct; and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information in this press release including, without limitation: risks that additional information may arise from the Company's and its audit committee's internal review, the risk that the process of preparing and auditing the restated financial statements or other subsequent events will require the Company to make additional adjustments, the time and effort required to complete the restatement of its financial statements, the Company being unable to file the Annual Filings and Interim Filings in the proposed timeframe, reliance on key personnel as well as other risks described more fully in the Company's filings which have been filed on SEDAR.
Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking information. The forward-looking information contained herein is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management on the date such forward-looking information is made. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.
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SOURCE PlantX Life Inc.
FAQ
What caused the cease trade order for PlantX (PLTXF)?
When are PlantX's required filings expected to be completed?
Does the cease trade order affect all shareholders of PlantX (PLTXF)?
Is PlantX facing insolvency issues?
