VANCOUVER, BC / ACCESSWIRE / December 1, 2020 / Eastwest Bioscience Inc. ("Eastwest" or the "Corporation") provides this default announcement indicating Eastwest's anticipated failure to file its annual financial statements for the year ended July 31, 2020 and related management discussion and analysis and certifications (collectively, the "Financial Statements") before the prescribed filing deadlines.
The Corporation's failure to file its Financial Statements on time is due to the following circumstances:
- The Company has changed its auditors from Adam Sung Kim Ltd. to DMCL Professional Chartered Accountants ("DMCL") and the COVID-19 pandemic has delayed various accounting and auditing procedures.
- The Company has been advised by its new auditors, DMCL, that they need more time to complete the audit.
- Due to the COVID-19 pandemic, the Company has experienced delays in providing to DMCL some of the information required for the completion of this audit.
Considering the foregoing factors, it is Eastwest's submission that the present circumstances warrant the imposition of a Management Cease Trade Order ("MCTO"), rather than a Cease Trade Order ("CTO"), as contemplated under National Policy 12-203 - Management Cease Trade Orders ("NP 12-203").
Eastwest's Financial Statements are required to be filed on or before January 29, 2021. Eastwest's failure to file by January 29, 2021 may result in the securities commissions or regulators imposing an Issuer CTO.
Eastwest fully expects to file its Financial Statements on or before January 29, 2021 as prescribed by NP 12-203. Further, Eastwest confirms that it intends to satisfy the requirements to provide Default Status Reports as prescribed by NP 12-203 so long as it remains in default of its requirements to file its Financial Statements within the prescribed period of time. Should Eastwest fail to file the appropriate Default Status Reports as prescribed by NP 12-203, the securities commissions or regulators may, as a result of such failure, impose an Issuer CTO.
Eastwest confirms that there are no insolvency proceedings against the Corporation as of the date herein. Eastwest also confirms that there is no other material information concerning the affairs of Eastwest that have not been generally disclosed as of the date herein.
ON BEHALF OF THE BOARD OF DIRECTORS
EASTWEST BIOSCIENCE GROUP
"Rodney Gelineau"
Chief Executive Officer and Director
"Paul Marjerrison"
Chief Financial Officer
For Further Information
Company Website: www.eastwestbioscience.com
Contact: Rodney Gelineau on 1-800-409-1930 or investors@eastwestscience.com.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the terms and conditions of the Corporation's filing of annual financial statements for the fiscal year ended July 31, 2019 and the related management's discussion and analysis and the MCTO. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: management's perceptions of the anticipated timeline in which the Filings can be completed and filed, results of operations, operational matters, historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. 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. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Eastwest Bioscience Inc.
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