VANCOUVER, BC / ACCESSWIRE / April 20, 2023 / Snipp Interactive (TSX-V:SPN)(OTC PINK:SNIPF) (the "Company" or "Snipp") announces that it has made an application to the British Columbia Securities Commission to approve a temporary management cease trade order the "MCTO") under National Policy 12-203 Management Cease Trade Orders ("NP 12-203"), which, if granted, will prohibit trading in securities of the Company by the chief executive officer and chief financial officer of the Company until such time as the Required Filings (as defined below) and all continuous disclosure requirements have been filed by the Company, and the MCTO has been lifted. During the period in which the MCTO is effective, the general public, who are not insiders of the Corporation, will continue to be able to trade in the Company's listed securities. The MCTO application has been made, but there is no guarantee or assurance that the MCTO will be granted.
The Company expects it will be unable to file its audited financial statements for the financial year ended December 31, 2022, and the management's discussion and analysis and related Chief Executive Officer and Chief Financial Officer certificates for this period (collectively, the "Required Filings") before May 1, 2023 filing deadline (the "Filing Deadline").
The Company's failure to file its Required Filings by the Filing Deadline is due to a combination of factors including the delays in its audit due to the complexity surrounding (i) the new business acquired by the Company during the year ended December 31, 2022 which forms a significant portion of the Company's consolidated revenue for the stated period and (ii) the change in auditor including the hiring and onboarding of the new auditor.
The Company anticipates that it will be in a position to remedy the default by filing the Required Filings on or before July 3, 2023. The MCTO will be in effect until the Required Filings are completed.
The Company intends to satisfy the provisions of the alternative information guidelines set out in section 10 NP 12-203 so long as the Required Filings are outstanding.