Ikänik Farms, Inc. announces that it will not be in a position to file its audited consolidated annual financial statements, the accompanying management’s discussion and analysis and related CEO and CFO certifications for the year ended December 31, 2021 (the “Annual Financial Filings”) by the May 2, 2022 filing deadline (the “Deadline”) due to a combination of internal and external delays associated with the preparation and audit process as a result of a number of factors, including the recent downsizing of the Company in California where it maintains its corporate accounting, the departure of the Company’s Controller, the onboarding and integration of the Company’s new Controller into its corporate systems, the capacity and limited availability of the Company’s auditor and unanticipated complexities with the completion of the Annual Financial Filings.
The Company has been informed by the Ontario Securities Commission (the “OSC”) that it is not eligible for a management cease trade order under National Policy 12-302 – Cease Trade Orders for Continuous Disclosure Defaults and, accordingly, the OSC will be issuing a failure-to-file cease trade order under National Policy 11-207 – Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions affecting all the Company’s securities following the Deadline.
The Company’s management and team members are moving expeditiously to complete the Annual Financial Filings which it anticipates will be filed prior to June 24, 2022. The Company is engaging a third-party service and advisory company to assist with the field work and audit evidence for its operations in Colombia and changes to the Company’s corporate accounting processes, consolidation of systems and location.
“The timing of this cease trade order does not take away from the Company’s momentum and recent results to transition operations away from its assets in California to the production and sale of certified pharmaceutical grade THC dry cannabis flower and derivatives from its indoor cultivation facility “Pideka” in Bogotá, Colombia, where Pideka has market leadership” said Mr. Sanz de Madrid, CEO.
Highlights of the Company’s recent developments include the:
I. |
appointment of a new CEO; |
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II. |
changes to the board of directors of the Company made to strengthen the board; |
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III. |
downsizing of operations in California, thereby reducing costs; |
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IV. |
continued review for further downsizing opportunities to satisfy loan obligations and reduce debt; |
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V. |
completion of a $3 million tranche of a $6 million investment initiative and |
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VI. |
receipt, through its wholly owned subsidiary Pideka, of European Good Manufacturing Practices (EU GMP) Certification. |
The Company will make further announcements with respect to the status of the Audited Financial Statements and changes to its accounting practices.
Ikänik Farms is multi-national operator with a medical grade indoor cultivation facility and laboratory (Pideka) in Colombia which holds GMP-PHARMA and (GACP) Good Agricultural and Collection Practice certifications, and a retail operation in California.