NORTH BUD FARMS PROVIDES CORPORATE UPDATE
/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./
TORONTO, March 15, 2022 /CNW/ - North Bud Farms Inc. (CSE: NBUD) (OTCQB: NOBDF) (the "Company") provides shareholders with the following corporate update:
Management wishes to announce that after consultations with numerous legal and financial advisors the board of directors have determined that the company does not have the resources required to continue to attempt to rectify its listing deficiencies, primarily the filing of its 2019 annual audited financial statements. Over the past 18 months the company has exhausted all resources attempting to establish a mutually acceptable position related to the application of numerous accounting standards and their impact on the company's transactions to acquire US based assets that took place in November 2019. The disposition of these assets in June 2020, along with the lack of historical comparables and evolving nature of the interpretation of these regulations, has resulted in significant challenges and costs to the company and no identifiable path to completion has arisen.
"Interpreting and applying traditional accounting standards as it pertains to the acquisition of US based cannabis assets is a significant undertaking which has created numerous obstacles for many publicly traded companies, particularly those based in Canada" said Chairman and Interim CEO, Ryan Brown.
The inability to return to active trading status has put the company in default of multiple secured debt obligations.
Consequently, effective immediately, North Bud Farms Inc. will cease operations and enter into debt settlement agreements with holders of secured debt instruments collateralized by the assets of the companies subsidiaries. As previously disclosed, Chairman and Interim CEO Ryan Brown is part of the secured debt holding group and has been funding the subsidiaries operations since July 2020.
Holders of North Bud Farms securities are urged to consult with their own investment or tax advisors about the implications of the ongoing Cease Trade Order.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statements
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the risk factors included in the Company's final long form prospectus dated August 21, 2018, which is available under the Company's SEDAR profile at www.sedar.com. Accordingly, readers should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company's management to predict all of such factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. The Company does not undertake any obligation to update any forward-looking statements to reflect information, events, results, circumstances or otherwise after the date hereof or to reflect the occurrence of unanticipated events, except as required by law including securities laws.
SOURCE North Bud Farms Inc.
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