Icanic Brands Blames Covid For Accounting Delays

Despite numerous other cannabis companies managing to complete their bookkeeping during the pandemic, Icanic Brands (OTC: ICNAF) is now blaming Covid as the reason its financial filings are late. The delay has resulted in a cease trade order by the British Columbia Securities Commission under National Policy 11-207. The financials are related to the fiscal year ending in July 2021 and the quarter ending in October 2021. Icanic has already received one extension from the BC Securities Commission that ended on February 11, 2022.

Management has had its wings clipped for trading and now that extends to all shareholders with the Canadian shares. The OTC shares are continuing to trade.

Icanic said in a statement that it “has been delayed in completing its audited financial statements as a result of Covid-19 related delays in obtaining information with respect to subsidiaries acquired during the current and prior year, as well as a change in auditors from the previous fiscal year. The previous acquisitions and auditor change has required certain expert reports and an increase in the overall scope of the audit, both of which have caused the delay in the Annual Filings. The Company is actively and expeditiously working with its auditors to file the Annual Filings, at which point the Company will seek to have the CTO revoked and trading reinstated on the CSE. The Company also confirms, as of the date of this news release, that there is no other material information concerning the affairs of the Company that has not been generally disclosed.”

No Financials Published In Almost A Year

The last published earnings for the company were almost a year ago when financials for the third quarter ending April 2021 were published. At that time, revenues were just C$3.2 million and the company only had cash of roughly C$2 million. In September 2021, the company said it had sold its interest in a Sacramento, CA Cultivation facility to Crowco Management LLC, a California-based limited liability company, for $2 million.

Since April the company has been making one acquisition after another. The company said it was buying THC Engineering, De Krown Enterprises, Substance LLC and then the biggest deal being LEEF Holdings, which is valued at $120 million.

The company also stated that it is working towards closing the acquisition of LEEF Holdings, Inc., as previously announced on January 25, 2022. LEEF is one of the largest cannabis extraction companies in the state of California and is a leading provider of bulk concentrates to many of the largest brands in the state. LEEF’s manufacturing capabilities include a 12,000 sq. ft state of the art extraction and manufacturing facility with up to 45 tons of biomass throughput per month and up to 3,000 liters of distillate extraction capability per month.

Debra Borchardt

Debra Borchardt is the Co-Founder, and Executive Editor of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Master's degree in Business Journalism from New York University.

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