Reaffirms Expectation to File Annual Filings and Restated Audit by July 10, 2020
OAKLAND, CA. and TORONTO, June 22, 2020 — Harborside Inc. (“Harborside” or the “Company”) (CSE: HBOR), a California-focused, vertically integrated cannabis enterprise, is providing an update to its previously disclosed management cease trade order (“MCTO”) in respect of the audited annual financial statements and corresponding management’s discussion and analysis for the year ended December 31, 2019 (collectively, the “Annual Filings”) and cease trade order (the “CTO“) in respect of the refiling of certain historical financial statements for the fiscal years ended December 31, 2017 and 2018 (the “Restated Audit”), and the interim periods ended March 31, 2019, June 30, 2019, and September 30, 2019, and any corresponding management’s discussion and analyses (collectively, the “Restated Interims“).
As previously disclosed, the delay in completing the Annual Filings occurred due to the impact of COVID-19. The Restated Audit and Restated Interim are due primarily to changes in the application of accounting treatments related to certain transactions by its reverse takeover acquirer, FLRish, Inc. Notwithstanding the delays in completing the filings, there is not expected to be a material impact to the assets currently owned by the Company, its current cash position or the positive financial performance the Company has reported so far this year.
The Company continues to expect to file the Annual Filings and Restated Audit no later than July 10, 2020 and will apply to have the CTO revoked. Although the CTO resulted in trading in the subordinate voting shares of the Company being suspended on the Canadian Securities Exchange (the “CSE”), the CTO is not expected to result in the Company being delisted from the CSE and the Company expects trading to resume on the CSE shortly after the revocation of the CTO.
The Company expects that a MCTO will remain in place until the Restated Interims are filed. The Company continues to work diligently with its auditor to file the Annual Filings, Restated Audit and Restated Interims as quickly as possible.
“While I don’t want to minimize the significance of the delayed filing and restatement, our current financial performance remains positive and improving,” said Peter Bilodeau, Chairman and Interim CEO of the Company. “Harborside has continued to perform well, despite the additional challenges we have all experienced as a result of COVID-19 and recent social unrest, and as I previously stated, 2020 is expected to be a banner year for our company.”
As required under Canadian securities laws, the Company will provide a further update on or about June 30, 2020. Additionally, to the knowledge of the Company, there have been no material business developments as of the date of this news release that have not been generally disclosed.