ParcelPal Announces Late Filing of Its Annual Financial Disclosure and Application for Management Cease Trade Order
Newsfile Corp.
5 min read
Vancouver, British Columbia--(Newsfile Corp. - April 16, 2024) - ParcelPal Logistics Inc. (OTCQB: PTNYF) (CSE: PKG) (FSE: PT0A) (the "Company" or "ParcelPal"), announces that the filing of its audited annual financial statements, management's discussion and analysis and related Chief Executive Officer and Chief Financial Officer certifications for the year ended December 31, 2023 (the "Required Filings") will be delayed beyond the prescribed filing deadline of April 29, 2024.
The principal reason behind the Issuer's delay in meeting its reporting deadline is the Company has determined that it is unable to file, without unreasonable effort or expense, its Required Filings by the prescribed due date, as its auditor BF Borgers, Chartered Professional Accountants, has been terminated as a participating audit firm by the Canadian Public Accountability Board. As a result BF Borgers must immediately terminate each of its Canadian reporting issuer audit engagements. The Company has identified a new auditor and will announce the appointment as soon as it is formalized.
The Company has made an application to the British Columbia Securities Commission (the "BCSC") for a management cease trade order ("MCTO"), which would restrict all trading in securities of the Company, whether direct or indirect, by management of the Company. The issuance of an MCTO does not generally affect the ability of shareholders who are insiders of the Company to trade their securities. There is no certainty that the MCTO will be granted. In the event that the MCTO is not issued by the BCSC, the applicable Canadian securities authorities could issue a general cease trade order against the Company for failure to file the Required Filings within the prescribed time period.
The Company is working expeditiously to appoint the new auditor it has identified and to complete the audit as soon as possible. The Company plans to remedy the default and file the Required Filings as soon as it is able to do so and expects such fillings to occur on or prior to June 10, 2024.
If the MCTO is granted, the Company intends to comply with the provisions of the alternative information guidelines as set out in the National Policy 12-203 — Management Cease Trade Orders for as long as it remains in default, including the issuance of bi-weekly default status reports, each of which will be issued in the form of a news release. The Company will also disclose any other material information concerning its affairs that has not been disclosed.
The Company confirms that there are no insolvency proceedings against it as of the date of this press release. The Company also confirms that there is no other material information concerning the affairs of the Company that has not been generally disclosed as of the date of this press release.
About ParcelPal Logistics Inc.
ParcelPal is a Vancouver, British Columbia company, with operations in the United States, that specializes in last-mile delivery service and logistics solutions. We are a customer-driven, courier and logistics company connecting people and businesses through our network of couriers. Some of our verticals include pharmacy & health, meal kit deliveries, retail, groceries and more.
Neither the Canadian Securities Exchange ("CSE"), the Securities and Exchange Commission nor any other securities regulatory authority has reviewed and do not accept responsibility for the adequacy or accuracy of this news release that has been prepared by management.
This news release contains forward-looking statements relating to the future potential of ParcelPal. Forward-looking statements are often identified by terms such as "will", "may", "should", "intends", "anticipates", "expects", "plans" and similar expressions. All statements other than statements of historical fact, included in this release are forward-looking statements that involve risks and uncertainties. These risks and uncertainties include, without limitation, the risk that the Required Filings will not be completed or on time due to, among other things, failure to agree to the terms with a new auditor, failure to receive the approval of the CSE, if and as needed, and the risk that ParcelPal will not be successful due to, among other things, general risks relating to the logistics industry, failure of ParcelPal to gain market acceptance, and potential challenges related to expansion, or with the intellectual property utilized in ParcelPal and its acquisition target(s). There can be no assurance that any forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
The Company cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. The risk of the discontinuation of business by third party customers of the acquired business(es) cannot be guaranteed, and is a business risk that is, in large measure, out of the control of the Company. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will only update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities laws.
