September 22, 2020 – Vancouver, BC – Geyser Brands Inc. (TSX-V: GYSR)(“Geyser Brands” or the “Company”) wishes to provide a corporate update to its shareholders and announces that, subject to regulatory approval, Aerock Fox and Wei Zhong have been appointed to the Company’s Board of Directors.
The Company also announces that, effective immediately, Amir Abdollahzadeh has stepped down from the role of the Company’s Chief Financial Officer and the Company is in the process of identifying a suitable candidate to serve as interim Chief Financial Officer to meet the Company’s short-term needs whilst the Company undertakes the thorough recruitment process to secure a suitable replacement.
Finally, the Company’s principal regulator, the British Columbia Securities Commission (the “Commission”) has issued a Cease Trade Order dated September 17, 2020 as a result of the Company’s failure to file its annual financial statements and accompanying management discussion and analysis for the year ended March 31, 2020 (the “Annual Documents”).
This early warning news release is issued under the early warning provisions of Canadian securities legislation, including National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues. The early warning reports, as required under applicable securities laws, contains additional information with respect to the foregoing matters and will be filed by each of Fox, Kersch and Thatcher on the Company’s SEDAR profile at www.sedar.com.
As outlined in the Company’s news releases dated July 22, 2020 and August 31, 2020, the Company had been relying on the exemptive relief recently granted by Canadian securities regulatory authorities under BC Instrument 51-517 – Temporary Exemption from Certain Corporate Finance Requirements with Deadlines during the Period of June 2 to August 31, 2020 (“BCI 51-517”), which had been granted in response to the extraordinary nature of the Covid-19 pandemic. The exemptive relief had allowed the Company a 45-day extension in which to file the Annual Documents, which had originally been due by July 29, 2020, to September 14, 2020. The delay of the Company to file the Annual Documents by the extended deadline is attributable to the challenges associated with completing year-end accounting tasks during the COVID-19 pandemic, coupled with the work-from-home conditions of those persons responsible for the preparation of the Annual Documents and certain complex accounting issues related to the preparation of financial statements of the Company and its various subsidiaries on a consolidated basis. Reinstatement to trading of the Company’s shares can only occur when the Cease Trade Order is revoked by the Commission and the TSX Venture Exchange (the “Exchange”) has concluded, if applicable, its reinstatement review to ensure that the Company is compliant with the Exchange’s requirements.
Management of the Company is currently working expeditiously with the Company’s external auditors to complete the Annual Documents which it anticipates will be done shortly. Upon filing of the Annual Documents, the Company will apply to the Commission for the revocation of the Cease Trade Order and the subsequent approval of the Exchange to resume trading. Updates will be provided in due course.
For more information, visit the company’s website at www.geyserbrands.com.
On Behalf of the Board of Directors
Director and CEO