Vancouver, British Columbia--(Newsfile Corp. - June 26, 2024) - ParcelPal Logistics Inc. (OTC Pink: PTNYF) (CSE: PKG) (FSE: PT0) (the "Company" or "ParcelPal") is providing an update on the status of a management cease trade order (the "MCTO") application that was announced on April 16, 2024 (the "Announcement") with its principal regulator, the British Columbia Securities Commission, who issued the MCTO on May 1, 2024. The Company applied for the MCTO in order to secure additional time for the Company to file its audited annual financial statements and the related management's discussion and analysis for the fiscal year ended December 31, 2023, (the "Annual Filings"), which were originally due on April 29, 2024. Preparation of the Annual Filings has also affected the timely completion of the Company's interim financial statements, accompanying management's discussion and analysis and related certifications for the three months ended March 31, 2024 (the "Interim Filings").
The Company and its newly appointed auditors will diligently work to complete the Annual Filings and Interim Filings as soon as possible. However, as previously reported, due to the Company's previous auditor BF Borgers, having been terminated as a participating audit firm by the Canadian Public Accountability Board and their suspension by the US Public Company Accounting Oversight Board, the Company's newly appointed auditor must complete a full two-year audit of the Company's prior financial statements. This is due to the fact that the Company's former auditor can no longer provide their consent to the previous financial statements. The Company is not aware of any material deficiencies or reportable events pertaining to the previously audited financial statements. The Company reaffirms that although this review will increase the time needed to complete and approve the Annual Filings and the Interim Filings (collectively, the "Required Filings"), it is working with its newly appointed auditor to complete the Required Filings as expeditiously as possible. As a result of the foregoing, the Company anticipates that it will be in a position to file the Required Filings on or before August 31, 2024, rather than June 28, 2024, as previously reported, given the need to complete a two-year audit rather than one year.
The MCTO prohibits all trading in the capital of the Company, whether directly or indirectly, by the Company's CEO and CFO until such time as the Required Filings have been filed by the Company and the MCTO has been lifted. The MCTO does not affect the ability of other shareholders to trade in the securities of the Company.
The Company confirms that since the date of the Announcement: (i) other than as described above, there has been no material change to the information set out in the Announcement that has not been generally disclosed; (ii) other than as described above, there has been no failure by the Company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines set out in NP 12-203; (iii) there has not been any other specified default by the Company under NP 12-203; and (iv) there is no other material information concerning the affairs of the Company that has not been generally disclosed.
The Company will continue to satisfy the provisions of the alternative information guidelines under NP 12-203 by issuing bi-weekly default status reports in the form of news releases until the Required Filings are posted and the MCTO has been lifted.
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 the 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.
