LAS VEGAS and VANCOUVER, British Columbia, March 01, 2023 (GLOBE NEWSWIRE) -- TAAT® GLOBAL ALTERNATIVES INC. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP) (the “Company” or “TAAT®”) announces today that as a result of delays to its audit, the Company’s annual financial statements and accompanying management's discussion and analysis for the fiscal year ended October 31, 2022 (the “Annual Filings”) were not finalized by February 28, 2023, being the date that such filings are due under applicable Canadian securities law requirements. The Company has applied for, and has been granted, a management cease trade order (the "MCTO") by the British Columbia Securities Commission.
The reason for the anticipated delay is due to the change of the Company’s auditor in advance of the October 31, 2022 year-end which has resulted in enhanced quality controls, additional audit procedures and added complexities of auditing certain transactions during the financial year. The auditors have requested more time for partner and consultant review as part of those enhanced measures. The Company is working with its auditor (BF Borgers CPA PC, Certified Public Accountants) to complete the audit in a timely manner.
The Company currently expects to file the Annual Filings on or before March 28, 2023 and will issue a news release announcing completion of such filings at such time. Until the Company files the Annual Filings, it will comply with the alternative information guidelines set out in National Policy 12-203 – Management Cease Trade Order for issuers who have failed to comply with a specified continuous disclosure requirement within the times prescribed by applicable securities laws. The guidelines, among other things, require the Company to issue bi-weekly default status reports by way of a news release so long as the Annual Filings have not been filed.
During the MCTO, the general investing public will continue to be able to trade in the Company's listed common shares. However, the Company's Chief Executive Officer and Chief Financial Officer will not be able to trade in the Company's common shares.
TAAT® Chief Executive Officer Michael Saxon commented, "As our business grows in magnitude, it also becomes more complex from an accounting perspective. The Company's management therefore made the decision to switch auditing firms, which prompted the need to obtain a filing date extension for our Fiscal 2022 financial statements. In addition to the fairly standard lead time for a new auditor to onboard a publicly traded entity like TAAT® as a client, a contributing factor to this extension is the addition of ADCO Distributors, Inc. ('ADCO') to the Company's portfolio. In ADCO's more than 60 years of operation, they have never undergone an audit on the scale of what is required for a public firm, which has required many things to be done for the first time. We thank TAAT®'s investors for their patience and understanding, and we expect the financials to ultimately be filed in advance of the new deadline."
On behalf of the Board of Directors of the Company,
TAAT® GLOBAL ALTERNATIVES INC.
“Michael Saxon”
Michael