Fobi AI Announces Application for Voluntary MCTO

VANCOUVER, BC, Oct. 27, 2023 (GLOBE NEWSWIRE) -- Fobi AI Inc. (FOBI:TSXV) (FOBIF:OTCQB) (the "Company" or "Fobi"), an industry leader in harnessing AI and data intelligence to enable digital transformation, announces that it has proactively applied for a voluntary management cease trade order (the “MCTO”) with the British Columbia Securities Commission, as a result of certain factors beyond the Company’s control, which will cause delays to the filing of the Company’s annual financial statements and accompanying management’s discussion and analysis for the fiscal year ended June 30, 2023 (the “Required Filings”). The MCTO only restricts the Chief Executive Officer and Chief Financial Officer of the Company from all trading in securities of the Company 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 of the Company to trade in securities of the Company.

The delay in the Required Filings is a result of an ongoing remediation process by the Company’s prior auditors relating to the audit of the Company for the financial year ended June 30, 2022, which they previously completed, as well as the ongoing current year audit. The Company is working diligently with the previous auditors to resolve their matter as quickly as possible and with the current auditors to complete and finalize the audit of the June 30, 2023, financial statements.

Rob Anson, CEO of Fobi AI, states: “Our business is growing and has expanded its operations globally, which has brought about certain complexities. After careful consideration, we have made the decision to file a voluntary MCTO (Management Cease Trade Order) and take proactive measures to safeguard the liquidity of our stock. We view this as a responsible and proactive step towards ensuring transparency, compliance, and protecting the interests of our shareholders with regard to the liquidity of our stock.”

The Company expects to file the Required Filings before November 30, 2023. Until the Company files the Required Filings, it will comply with the alternative information guidelines set out in National Policy 12-203 – Management Cease Trade Orders. The guidelines, among other things, require the Company to issue bi-weekly default status reports by way of a news release until such time as the Required Filings have been filed.

This press release is available on the Fobi website.

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About Fobi AI

Founded in 2017 in Vancouver, Canada, Fobi is a leading AI and data intelligence company that provides businesses with real-time applications to digitally transform and future-proof their organizations. Fobi enables businesses to action, leverage, and monetize their customer data by powering personalized and data-driven customer experiences, and drives digital sustainability by eliminating the need for paper and reducing unnecessary plastic waste at scale.

Fobi works with some of the largest global organizations across retail & CPG, insurance, sports & entertainment, casino gaming, and more. Fobi is a recognized technology and data intelligence leader across North America and Europe, and is the largest data aggregator in Canada's hospitality & tourism industry.

On behalf of the Board of Directors of the Company
“Rob Anson”

Rob Anson
Chief Executive Officer and Director

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Cautionary Statement Regarding Forward-Looking Information

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words “believes,” “may,” “plans,” “will,” “anticipates,” “intends,” “could”, “estimates”, “expects”, “forecasts”, “projects” and similar expressions, and the negative of such expressions. Forward-looking information in this news release may include statements about the expected filing of the Required Filings as well as the grant of a MCTO.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances at the date such statements are made including, without limitations, information based on the current state of the Required Filings, the anticipated work required for prior auditors to complete their remediation work, staffing challenges present at many accounting firms and other factors which may be outside the control of the Company. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information, and there is no guarantee the Required Filings will be made on the timeline currently expected or at all or that an MCTO will be granted. If the MCTO is not granted and/or the Required Filings are not filed on time or are subject to additional delays, the securities of the Company could be subject to a cease trade order or other actions taken by the securities regulators and/or exchanges. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.