TORONTO, ONTARIO–(Marketwired – Aug. 25, 2017) –
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Canada House Wellness Group Inc. (CSE:CHV)(CSE:CHV.CN)(CNSX:CHV) (“Canada House” or the “Company“) announces that it has made an application to the Ontario Securities Commission to approve a management cease trade order (“MCTO“) under National Policy 12-203 – Cease Trade Orders for Continuous Disclosure Defaults (“NP 12-203“), which, if granted, will prohibit trading in securities of the Company by certain insiders of the Company, whether direct or indirect. The Company is unable to file its audited financial statements for the year ended April 30, 2017 and the management’s discussion and analysis and related Chief Executive Officer and Chief Financial Officer certificates for this period (collectively, the “Required Filings“) before the August 28, 2017 filing deadline (the “Filing Deadline“).
The Company will be unable to make the Required Filings because it has been denied access to certain records relating to its wholly-owned subsidiary Ananda Clinics Inc. (“Ananda“) that are necessary in order to complete the preparation and audit of the audited annual financial statements for the year ended April 30, 2017. The access to the necessary records has been denied since May 17, 2017 by a former director and a former officer of the Company who are claiming an ownership entitlement to Ananda.
The Company has initiated legal proceedings against such individuals to establish it as the owner of Ananda. As part of the legal proceedings, the Company has requested an order requiring such individuals to produce the records of Ananda necessary to enable the Company to complete the Required Filings. Although the Company is confident the evidence before the court supports a ruling in favour of the Company, the Company is in negotiations to arrive at a settlement of the legal proceedings in order to complete the Required Findings expeditiously. The settlement of the legal proceedings or the receipt by the Company of an order requiring the production of the relevant records will enable the Company to complete and file the Required Filings.
The Company anticipates that it will be a position to remedy the default by filing the Required Filings on or before October 28, 2017. The MCTO will be in effect until the Required Filings are filed.
The Company intends to satisfy the provisions of the alternative information guidelines set out in Sections 9 and 10 of NP 12-203 so long as the Required Filings are outstanding.
Canada House Wellness Group Inc.
Canada House is the parent company of Marijuana for Trauma Inc., Knalysis Technologies and Abba Medix Corp. The Company’s goal is to become a marketplace leader through strategic partnerships, mergers, and acquisitions to create a fully integrated cannabis therapy company. For more information please visit https://www.canadahouse.ca or www.sedar.com.
Cautionary Statement Regarding Forward‐Looking Information. Certain statements within this news release pertaining to the Company constitute “forward‐looking statements”, within the meaning of applicable securities laws, including without limitation, statements regarding future estimates, business plans and/or objectives, sales programs, forecasts and projections, assumptions, expectations, and/or beliefs of future performance, are “forward‐looking statements”. Such “forward‐looking statements” involve known and unknown risks and uncertainties that could cause actual and future events to differ materially from those anticipated in such statements. Forward‐looking statements include, but are not limited to, statements with respect to the anticipated effects of the financing, regulatory changes, timeliness of government approvals for the granting of permits and licenses, changes in medical marijuana prices, actual operating performance of facilities, competition and other risks affecting the Company in particular and the medical marijuana industry generally, including those set out in the Company’s public disclosure record. The Company assumes no responsibility to update or revise forward‐looking information to reflect new events or circumstances unless required by law.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.