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Peachland, British Columbia--(Newsfile Corp. - April 20, 2023) - Craftport Cannabis Corp. (CSE: CFT) ("Craftport Cannabis" or the "Company") announces that the British Columbia Securities Commission (the "BCSC") has rejected the Company's application for a management cease trade order (the "MCTO") as the Company is viewed as not having met all of the criteria for an MCTO. The Company filed the MCTO with the BCSC due to an anticipated delay in filing its audited annual financial statements, accompanying management's discussion and analysis, and certifications for the year ended December 31, 2022 (the "Required Filings") by the filing deadline of May 1, 2023. The Company expects to be issued a cease trade order ("CTO") by the BCSC as a result of not filing the Required Filings.
The anticipated delay is due, in part, to a change in the Company's senior management in 2022 and the Company not having sufficient capital at this time to begin the year end audit process. The Company is working diligently to remedy the default by securing additional capital to start the audit process and working with its auditor to ensure the filing of its Required Filings as soon as possible.
Once complete, a news release will be issued indicating that the Required Filings have been submitted. Upon remedying the default within 90 days of the date of the CTO, the filing of the Required Filings, including all other filings and certifications that subsequently become due, constitutes the application to revoke the CTO. In the interim, the Company continues to operate normally and without disruption.
The Company therefore fully expects to file its Required Filings prior to the end of the additional one month period as prescribed by NP 12-203. Further, the Company has confirmed that it intends to satisfy the provisions of the alternative information guidelines described in sections 9 and 10 of NP 12-203 for so long as it remains in default for failure to file the Required Filings. Should the Company 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 Cease Trade Order.
The Company confirms that it is not subject to any insolvency proceeding as of the date hereof. The Company also confirms that there is no other material information concerning the affairs of the Company that have not been generally disclosed as of the date hereof.
About Craftport Cannabis
Craftport Cannabis is a Canadian cannabis licensed producer operating out of Peachland, British Columbia. The Company is focused on the Canadian premium craft cannabis recreational market by utilizing an outsourced cultivation model.