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ParcelPal Logistics (OTC Pink: PTNYF) has provided an update on its management cease trade order (MCTO) application, initially announced on April 16, 2024. The British Columbia Securities Commission granted the MCTO on May 1, 2024, due to delays in filing audited annual financial statements for the fiscal year ended December 31, 2023, and interim financial statements for the three months ended March 31, 2024. These delays stem from the termination of the company’s previous auditor, BF Borgers, by regulatory bodies, necessitating a full two-year audit by new auditors. ParcelPal aims to complete the filings by August 31, 2024. The MCTO restricts trading by the CEO and CFO but does not affect other shareholders.
Positive
- The MCTO does not affect trading by shareholders other than the CEO and CFO.
- The company is actively working to complete the required filings by August 31, 2024.
- There have been no material deficiencies or reportable events with the previously audited financial statements.
Negative
- Delay in filing audited annual financial statements and interim financial statements.
- The previous auditor was terminated by regulatory bodies, causing additional delays.
- A full two-year audit is required by the newly appointed auditor, increasing time and costs.
- The MCTO restricts trading by the CEO and CFO.
Vancouver, British Columbia–(Newsfile Corp. – June 12, 2024) – ParcelPal Logistics Inc. (OTC Pink: PTNYF) (CSE: PKG) (FSE: PT0) (the “Company” or “ParcelPal“), is providing an update on the status of a management cease trade order (the “MCTO“) application that was announced on April 16, 2024 (the “Announcement“) with its principal regulator, the British Columbia Securities Commission, who issued the MCTO on May 1, 2024. The Company applied for the MCTO in order to secure additional time for the Company to file its audited annual financial statements and the related management’s discussion and analysis for the fiscal year ended December 31, 2023, (the “Annual Filings“), which were originally due on April 29, 2024. Preparation of the Annual Filings is also affecting the timely completion of the Company’s interim financial statements, accompanying management’s discussion and analysis and related certifications for the three months ended March 31, 2024 (the “Interim Filings“).
The Company and its newly appointed auditors are working diligently to complete the Annual Filings and Interim Filings as soon as possible. However, due to the Company’s previous auditor BF Borgers, having been terminated as a participating audit firm by the Canadian Public Accountability Board and their suspension by the US Public Company Accounting Oversight Board, the Company’s newly appointed auditor must complete a full two-year audit of the Company’s prior financial statements. The primary reason for this is that the Company’s former auditor can no longer provide their consent to the previous financial statements. The Company is not aware of any material deficiencies or reportable events pertaining to the previously audited financial statements. This additional review will increase the time needed to complete and approve the Annual Filings and The Interim Filings. As a result of the foregoing, the Company now anticipates that it will be in a position to file the Annual Filings and Interim Filing on or before August 31, 2024 (collectively, the “Required Filings“).
The MCTO prohibits all trading in the capital of the Company, whether directly or indirectly, by the Company’s CEO and CFO 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 to trade in the securities of the Company.
The Company confirms that since the date of the Announcement: (i) other than as described above, there has been no material change to the information set out in the Announcement that has not been generally disclosed; (ii) other than as described above, there has been no failure by the Company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines set out in NP 12-203; (iii) there has not been any other specified default by the Company under NP 12-203; and (iv) there is no other material information concerning the affairs of the Company that has not been generally disclosed.
The Company will continue to satisfy the provisions of the alternative information guidelines under NP 12-203 by issuing bi-weekly default status reports in the form of news releases until the Required Filings are posted and the MCTO has been lifted.
About ParcelPal Logistics Inc.
ParcelPal is a Vancouver, British Columbia company, with operations in the United States, that specializes in last-mile delivery service and logistics solutions. We are a customer-driven, courier and logistics company connecting people and businesses through our network of couriers. Some of our verticals include pharmacy & health, meal kit deliveries, retail, groceries and more.
ParcelPal Website: www.parcelpal.com
Neither the Canadian Securities Exchange (“CSE”), the Securities and Exchange Commission nor any other securities regulatory authority has reviewed and do not accept responsibility for the adequacy or accuracy of this news release that has been prepared by management.
OTCQB – Symbol: PTNYF
CSE – Symbol: PKG
FSE – Symbol: PT0A
Contact Information
Investor Contact
investors@parcelpal.com
T: (587) 883-9811
Company Contact
investors@parcelpal.com
T: (587) 883-9811
Forward-Looking Information
This news release contains forward-looking statements relating to the future potential of ParcelPal. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “intends”, “anticipates”, “expects”, “plans” and similar expressions. All statements other than statements of historical fact, included in this release are forward-looking statements that involve risks and uncertainties. These risks and uncertainties include, without limitation, the risk that the Required Filings will not be completed or on time due to, among other things, failure to agree to the terms with the new auditor, failure to receive the approval of the CSE, if and as needed, and the risk that ParcelPal will not be successful due to, among other things, general risks relating to the logistics industry, failure of ParcelPal to gain market acceptance, and potential challenges related to expansion, or with the intellectual property utilized in ParcelPal and its acquisition target(s). There can be no assurance that any forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
The Company cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. The risk of the discontinuation of business by third party customers of the acquired business(es) cannot be guaranteed, and is a business risk that is, in large measure, out of the control of the Company. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will only update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/212765
FAQ
What is the status of ParcelPal’s MCTO application?
ParcelPal’s MCTO application was granted on May 1, 2024, due to delays in filing audited financial statements.
When does ParcelPal expect to complete its financial filings?
ParcelPal aims to complete its financial filings by August 31, 2024.
Why was ParcelPal’s previous auditor terminated?
The company’s previous auditor, BF Borgers, was terminated by regulatory bodies, necessitating a new audit.
How does the MCTO affect ParcelPal shareholders?
The MCTO restricts trading by the CEO and CFO but does not affect other shareholders.
What are the reasons for the financial filing delays at ParcelPal?
Delays are due to the termination of the previous auditor and the need for a full two-year audit by the new auditor.
