Montreal, Quebec--(Newsfile Corp. - May 2, 2023) - Mobi724 Global Solutions Inc. (TSXV: MOS) ("Mobi724" or the "Company"), a fintech enabler of AI-powered payment card-linked solutions, announces today that it will miss its filing deadlines of April 30, 2023 to file the annual audited financial statements and accompanying management's discussion and analysis and related CEO and CFO certificates for the period ended December 31, 2022 (collectively, the "Annual Filings") as required under applicable Canadian securities laws.
In connection with the Company's inability to file the Annual Filings on time, the Company has applied for a Management Cease Trade Order ("MCTO") under National Policy 12-203 - Management Cease Trade Orders ("NP 12-203") and is waiting for L'Autorité des Marchés Financiers" ("AMF") approval.
The Company is applying for a MCTO as a result of the Company's former auditor not renewing its mandate and due to the long process of finding a replacement. The Company is currently undergoing the internal administrative acceptance procedure with a successor auditor and once complete, the successor auditor will confirm the mandate and allocate the necessary resources to coordinate with the Company the collection of required data and documentation to complete the review of the Company, during the period ended December 31, 2022. Accordingly, once the successor auditor's internal acceptance process is complete, the Company shall announce same as required under applicable Canadian securities laws.
The Company expects to file the Annual Filings as soon as they are available, but in any event no later than June 30, 2023, and will issue a news release once the Annual Filings have been filed. Until the Company files the Annual Filings, it will comply with the alternative information guidelines set out in NP 12-203. The guidelines, among other things, require the Company to issue bi-weekly default status reports, in the form of news releases, for 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 Common Shares listed on the TSX Venture Exchange. However, the Company's Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Chief Technology Officer and all the directors will not be able to trade in the Company's shares, nor will the Company be able to, directly or indirectly, issue securities to or acquire securities from an insider or employee of the Company except in accordance with legally binding obligations to do so existing as of April 30, 2022, being the date of the Company's continuous disclosure default.
Company Update
The Company continues to make progress on its sales pipeline from previously announced backlog of contracts estimated value over $7.4 M for the next 36 months in Q4 2022, all these projects are at different integration stages that have codependency on third party delivery dates. The Company continues to execute proof of concepts with prospects which has been successful in the past 12 months to close deals.
To improve balance sheet
- the Company concluded shares for debt agreements to convert an amount of approximately $650K of debt owed to related parties in late Q4 and has concluded concessions from certain vendors and is seeking concessions from lenders to facilitate new inflows from new investment prospects.
- The company concluded a new funding in Q1 of 700k.
Financial Performance
- Although, Key resources will be added to the business development focused on Mexico this quarter, the Company has reduced its net operations costs by more than 500k this past quarter and will continue this path until it reaches its goal of becoming cash flow positive.
- Subject to overcoming funding constraints, the Company is aiming to become EBITDA positive in Q4 of 2023 and or early fiscal 2024.
Marcel Vienneau, CEO of Mobi724 Global said: "Although the past 9 months have been the best yet in our history from a business development perspective, it is our focus to reach agreements with strategic investors, lenders, and others so we can focus on executing our business plan. This will enable the management to focus on executing its business plan. It is a very challenging period and at the same time the outlook for growth is confirmed."
About Mobi724 Global Solutions Inc.
Every Transaction is An Opportunity
Mobi724 Global Solutions Inc. (TSXV: MOS) is an AI powered fintech company which provides a platform, that enables banks and merchants to offer their customers real-time payment card-linked incentives, in a white-label format. Mobi724's objective is to add a layer of AI-driven actionable intelligence to every payment transaction, creating engaging consumer experiences & generating incremental commercial opportunities to its clients. Learn more at mobi724.com.
Legal Disclaimer
Mobi724 cautions investors that any forward-looking statements or projections made by Mobi724 are subject to risks and uncertainties, that may cause actual results to differ materially from those projected. Such factors include, but are not limited to, those described under Item 'Risk Factors and Uncertainties' in the Company's Management Discussion and Analysis, available on SEDAR. Any forward-looking statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. Mobi724 cautions that all forward-looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Mobi724's control. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, Mobi724 undertakes no obligation to publicly update or revise any forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
THIS NEWS RELEASE DOES NOT CONSTITUTE A SOLICITATION TO BUY OR SELL ANY SECURITIES IN THE UNITED STATES AND IS NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Investor Relations:
For further information, please visit www.MOBI724.com or contact:
Marcel Vienneau, CEO
Mobi724 Global Solutions Inc.
T: 514-394-5200 ir@mobi724.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/164515
