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CALGARY, AB, Aug. 27, 2024 /CNW/ - Vencanna Ventures Inc. (CSE: VENI) ("Vencanna" or the "Company"), an Alberta-based go-to capital provider for early-stage cannabis initiatives, announces that it will not be in a position to file its audited annual financial statements for the year ended April 30, 2024, the related management's discussion and analysis and related CEO and CFO certificates (collective, the "Required Documents") by the required deadline of August 28, 2024 (the "Deadline"). The delay is attributable to the Company's recently completed acquisition of The Cannavative Group LLC (the "Acquisition"), which closed earlier this year on April 30, 2024. The Acquisition involved a change in the audit team that the Company utilizes in the organization of its auditor as a result of the Company's status transitioning from an investment company to an operating company. The onboarding process for the new audit team caused delays in the ability of the Company to meet the Deadline. Additionally, the Acquisition subjected the Company to additional disclosure requirements outside the ordinary course, including the engagement of a third-party consultant to prepare a post-closing purchase price adjustment. Such preparation cannot reasonably be completed by the consultant by the Deadline. The Company expects to file the Required Documents on or before October 25, 2024 (the "Extension Period"). During the Extension Period, the Company will work with the new audit team and the third-party consultant preparing the purchase price adjustment, to ensure that such parties will be in a position to complete their review and provide the information necessary, in order for the Company to file the financial statements within the requested Extension Period.
The Company has applied to the Alberta Securities Commission, as principal regulator for the Company, for the imposition of a management cease trade order under National Policy 12-203 – Management Cease Trade Orders ("NP 12-203") throughout the duration of the default.
The management cease trade order, if approved, will generally not affect the ability of persons who are not or have not been management of the Company to trade in its securities.
The Company confirms that it will satisfy the provisions of the alternative information guidelines under NP 12-203 by issuing biweekly default status reports in the form of news releases for so long as it remains in default of the above-noted filing requirements.