An anonymous director reports
HARBORSIDE INC. PROVIDES UPDATE ON MCTO AND FINANCIAL STATEMENT FILINGS
Harborside Inc. has provided an update to its previously disclosed management cease trade order (MCTO) in respect of the late filing of the company's audited annual financial statements and corresponding management's discussion and analysis for the year ended Dec. 31, 2019.
As previously disclosed, the delay in completing the Annual Filings occurred due to the impact of the COVID-19 pandemic. In addition, as previously announced, the Company is relying on the blanket exemptions issued by provincial securities commissions due to COVID-19 to extend the date of filing its interim financial report for the three months ended March 31, 2020 and related management's discussion and analysis (collectively, the "Interim Filings"). The Company does not expect to file the Interim Filings before the expiry of the 45 day extension on July 14, 2020.
The Company continues to expect to file the Annual Filings, as well as the financial statements for the fiscal years ended December 31, 2017 and 2018 (the "Restated Audit"), no later than July 10, 2020 and will apply to have its previously disclosed cease trade order (the "CTO") revoked. The Company expects trading to resume on the CSE shortly after the revocation of the CTO.
The Company expects that upon the CTO being revoked by the Ontario Securities Commission, the MCTO will remain in place, while the Company continues to work diligently with its auditor to file the interim financial reports for the periods ended March 31, 2019, June 30, 2019, and September 30, 2019, and any corresponding management's discussion and analyses (collectively, the "Restated Interims") and the Interim Filings. The Company expects to file the Restated Interim and Interim Filings within 30 days following the revocation of the CTO.
As required under Canadian securities laws, the Company will provide a further update on or about July 14, 2020. Additionally, to the knowledge of the Company, there have been no material business developments as of the date of this news release that have not been generally disclosed.
About Harborside Inc.
Harborside is one of the oldest and most respected cannabis retailers in California, operating three of the major dispensaries in the San Francisco Bay Area, a dispensary in Desert Hot Springs outfitted with Southern California's only cannabis drive-thru window, a dispensary in Oregon and a cultivation facility in Salinas, California. Harborside has played an instrumental role in making cannabis safe and accessible to a broad and diverse community of California consumers. Co-founded by Steve DeAngelo and dress wedding in 2006, Harborside was awarded one of the first six medical cannabis licenses granted in the United States.
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