Vancouver-based cannabis producer THC BioMed Intl Ltd. (OTC: THCBF) is facing delays in filing its annual financial statements due to unpaid auditor fees, which also led to a management cease trade order by the British Columbia Securities Commission.
The company did not submit its financial statements for the fiscal year ending July 31, 2023, by the prescribed deadline of Nov. 28, 2023. The company said in a news release that the delay stems from cash flow issues that prevented the firm from paying its auditor.
In response, THC BioMed’s CEO and CFO offered bridge financing to partly cover these fees, and the company is exploring additional bridge financing options to fulfill the remaining financial obligations.
The company expects to receive payments from various provincial cannabis operations in Canada later this month, which it believes will be enough to settle the outstanding audit fees.
For now, management is prohibited from trading company securities until the financials are filed. The firm is looking to submit its overdue annual report by the end of the month, as well as its interim statements for the period ending Oct. 30, 2023, by Feb. 5.
The company is obligated to provide biweekly default status reports until its annual filings are completed. The order doesn’t restrict the trading of the company’s shares by the general public.
THC BioMed also confirmed that there have been no significant business developments since the filing of its last interim financial reports for the period ending April 30, 2023.
“The company continues to make best efforts to correct the deficiency by increasing the company’s cash flow,” the firm said. “The company is in the process of shipping its newly released products which it expects will increase its cash flow in order for the company to satisfy the auditor’s requirements to complete the annual filings.”