Yangaroo Announces Rejection of Voluntary Management Cease Trade Order, Anticipated FFCTO and CFO Resignation
Yangaroo Inc. announces the rejection of a voluntary management cease trade order and anticipates a failure-to-file cease trade order from the Ontario Securities Commission due to the inability to file audited annual financial statements by the deadline. The company's CFO has resigned, and the CEO will act as Interim CFO to complete the necessary filings.
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The rejection of the voluntary management cease trade order and anticipated failure-to-file cease trade order may negatively impact investor confidence and the company's stock price.
The resignation of the Chief Financial Officer could lead to uncertainty in the financial management of the company.
The potential delay in filing the annual financial statements may result in regulatory penalties and further challenges for the company.
Toronto, Ontario--(Newsfile Corp. - April 30, 2024) - YANGAROO Inc. (TSXV: YOO) (OTC Pink: YOOIF) (the "Company"), a software leader in media asset workflow solutions for the advertising and entertainment industries, provides an update to its news release issued on April 15, 2024 regarding the Company's inability to file the Company's audited annual financial statements, accompanying management discussion and analysis, and CEO and CFO certifications for the financial year ended December 31, 2023 (the "Annual Filings") in accordance with applicable Canadian securities laws on or before April 29, 2024 filing deadline (the "Filing Deadline").
The Company previously announced its proactive submission of an application to the Ontario Securities Commission (the "OSC") to approve a voluntary temporary management cease trade order ("MCTO") under National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-203"), which, if granted, would have prohibited trading in securities of the Company by the chief executive officer and chief financial officer of the Company until such time as the Annual Filings have been filed by the Company, and the MCTO lifted. The OSC rejected the Company's application for the MCTO due to the view that there is not an active, liquid market for the Company's securities based on a review of the trade volume, trade value, and number of trades over the last month. As such, the Company has been notified that the OSC will issue a failure-to-file cease trade order ("FFCTO") under Multilateral Instrument 11-103 - Failure-to-File Cease Trade Orders in Multiple Jurisdictions against the Company after the Filing Deadline.
The FFTCO will prohibit any trading, whether direct or indirect, of the Company's securities in each jurisdiction in Canada until the Company is able to complete the filing of the Annual Filings and successfully apply for a revocation of the FFCTO, noting that if the Annual Filings are made within 90 days of the date of the FFCTO, including any interim financial statements, management's discussion and analysis and certifications that subsequently became due (the "Subsequent Filings"), the filing of the Annual Filings (and Subsequent Filings if applicable) will constitute the application to revoke the FFCTO. There can be no assurance that the FFCTO will be revoked on the timeline contemplated by the Company.
The Company also announces that the Company's Chief Financial Officer, Frank Guo, has resigned from his position as Chief Financial Officer. Mr. Guo has elected to remain with the Company as a financial advisor in order to continue working closely with management and the auditors to complete the Annual Filings (and Subsequent Filings). The Company has appointed Grant Schuetrumpf, Chief Executive Officer of the Company, as Interim Chief Financial Officer during this period to oversee the completion and filing of the Annual Filings (and Subsequent Filings if applicable) while following steps are determined.
The Company intends to continue to work diligently and expeditiously with its auditors and expects to file the Annual Filings as soon as possible, anticipated to be by the end of May 2024 and in any event no later than June 28, 2024.
About YANGAROO:
Yangaroo is a software leader in media asset workflow and distribution solutions for the advertising, music, and awards industries. YANGAROO's patented Digital Media Distribution System is a leading secure business-to-business cloud-based solution that incorporates production services, traffic, clearance, delivery, analytics, and secure API integration for the industry's various video and audio workflow challenges.
YANGAROO has offices in Toronto, New York, and Los Angeles. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under OTCBB: YOOIF.
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For YANGAROO Investor Inquiries:
Grant Schuetrumpf
Phone: (416) 534-0607
investors@yangaroo.com
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 YANGAROO, that may cause the actual results, level of activity, performance or achievements of YANGAROO to be materially different from those expressed or implied by such forward looking statements. Although YANGAROO 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. The Company is making forward-looking statements with respect, but not limited to, the FFCTO, including but not limited to the anticipated timeline for filing the Annual Filings (and Subsequent Filings if applicable) and the revocation of the FFCTO; and the duration and details related to Mr. Guo remaining with the Company and Mr. Schuetrumpf's appointment as Interim CEO.
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 YANGAROO'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 YANGAROO assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/207362
FAQ
Why did Yangaroo Inc. announce the rejection of a voluntary management cease trade order?
Who resigned from their position as Chief Financial Officer at Yangaroo Inc.?
Who will act as Interim Chief Financial Officer at Yangaroo Inc.?
When does Yangaroo Inc. anticipate filing the Annual Filings?
