Sativa Wellness Group Announces Filing of Amended and Restated Financial Statements
Sativa Wellness Group has released amended financial statements for the three and nine months ended September 30, 2020, correcting the share exchange arrangement from its acquisition of Sativa Group. These amended financials are aligned with the December 2020 Year-End Financial Statements and have been restated in British Pounds (GBP) to reflect the company's relevant currency. Key adjustments include a reduction in goodwill by £4.9 million and a decrease in shareholders equity by £4.25 million. The amended statements are accessible on SEDAR.
- Alignment of amended financials with December 2020 Year-End Financial Statements.
- Restatements provide clarity on financial position in GBP.
- Reduction in goodwill by £4.9 million, indicating possible overvaluation.
- Decrease in shareholders equity by £4.25 million, which could concern investors.
VANCOUVER, BC / ACCESSWIRE / May 14, 2021 / Sativa Wellness Group Inc. (CSE:SWEL)(OTC PINK:SCNNF) ("Sativa Wellness" or the "Company") announced today it has filed amended and restated financial statements for the three and nine months ended September 30, 2020 (together with an amended corresponding management's discussion and analysis) (collectively, the "Amended Financials") in order to reflect the correct adjustments related to the share exchange arrangement on the acquisition of Sativa Group. These amended financials are in line with the recently published December 2020 Year end Financial Statements, which already incorporated these amendments.
The following is a summary of the impact of the restatements on the previously reported unaudited condensed consolidated interim financial statements issued on January 15, 2021. It should be noted that the previously reported unaudited condensed consolidated interim financial statements were reported in Canadian dollars, and the restated unaudited condensed consolidated interim financial statements are now presented in British Pounds (GBP) to reflect the more relevant presentation currency of the Company. Any changes in figures not related to the adjustments to the share exchange arrangement are solely due to foreign exchange translation.
Previously Reported September, 30 2020 C$,000 | Previously Reported September, 30 2020 £,000 | Adjustments September, 30 2020 £'000 | As Adjusted September, 30 2020 £'000 | |
Statement of Financial Position | ||||
Plant & Equipment | 5,792 | 3,380 | (44) | 3,336 |
Intangible Assets | 79 | 46 | 787 | 833 |
Goodwill | 9,704 | 5,663 | (4,948) | 715 |
Deferred Tax | - | - | (152) | (152) |
Shareholders Equity | 20,454 | 11,935 | (4,252) | 7,683 |
Statement of Net Loss and comprehensive Loss | ||||
Revenue | 2,087 | 1,218 | (20) | 1,198 |
Cost of Sales | (921) | (537) | 8 | (529) |
Total Expenses | (6,397) | (3,733) | 23 | (3,710) |
Net Loss and Comprehensive Loss | (5,231) | (3,052) | 11 | (3,041) |
Statement in Changes in Equity | ||||
Reverse Acquisition | 17,880 | 10,444 | (4,259) | 6,185 |
Net Loss | (5,135) | (2,997) | (139) | (3,136) |
Statement of cashflows | ||||
Loss before Income Taxes | (5,560) | (3,244) | (21) | (3,265) |
The Amended Financials are available under the Company's profile on SEDAR at www.sedar.com. The Amended Financials replace and supersede the previously filed original financial statements and related management discussion and analysis. Such previously filed original financial statements and management discussion and analyses should be disregarded.
The directors of the Company accept responsibility for the contents of this announcement.
On behalf of the Board of Directors,
Marc Howells | Anne Tew |
Neither the Canadian Securities Exchange nor its Market Regulator (as defined in the policies of the Canadian Securities Exchange) accept responsibility for the adequacy or accuracy of this release. This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Sativa's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" "plan is" or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur", "will be achieved" or "shortly". The forward-looking information and forward-looking statements contained herein include, but are not limited to information concerning the Amended Financials..
Although Sativa believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this news release are made as of the date of this press release, and Sativa does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
SOURCE: Sativa Wellness Group Inc.
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