Abattis Provides Update on Trading Halt and Corporate Developments
VANCOUVER, British Columbia, Nov. 08, 2019 (GLOBE NEWSWIRE) -- Abattis Bioceuticals Corp. (the “Company” or “Abattis“) (CSE:ATT) (OTC:ATTBF) announces the following updates on recent developments related to Abattis since the trading of the Company’s common shares on the Canadian Stock Exchange (the “CSE”) was halted on February 4, 2019 (the “Halt”).
Since the Halt, the Company filed its audited annual financial statements and management discussion and analysis on August 8, 2019. Following this, on August 16, 2019, the Company filed its interim financial statements and management discussion and analysis for the first quarter ended December 31, 2018 and second quarter ended March 31, 2019. On August 28, 2019, the Company then filed its interim financial statements and management discussion and analysis for the third quarter ended June 30, 2019. Since the filings in August, the Company has been and continues to be current in all of its continuous disclosure filings.
The Company has also paid all of its outstanding regulatory fees to the British Columbia Securities Commission (the “BCSC”), the Alberta Securities Commission, the Ontario Securities Commission, and the CSE.
After completing all of the necessary filings, the Company filed an application for a revocation order with the BCSC on August 26, 2019. The Company received a response to the application on October 7, 2019 and provided a prompt and comprehensive response on October 15, 2019. The Company has now been advised that the BCSC is completing a comprehensive review, which the Company anticipates may take several more months. The Company is ready to respond to any comments and requests that the BCSC may have.
The Company’s acquisition of Pro Natura BV has been a great success as revenues have increased significantly since the acquisition, and cost efficiency measures continue to be implemented. In September of 2019, Pro Natura BV launched a new line of products targeted to women, which was strategically done and was extremely successful.
Following the Halt, the Company immediately pursued changing its auditor and most of its management and board of directors. With a new team and new auditors in place, the Company was able to successfully complete its annual audit and proceeded to complete on all of its continuous disclosure filings. Further to news releases dated December 7, 2018, January 10, 2019, and January 18, 2019, the Company intended to acquire 1157016 B.C Ltd. dba NutriVida (“NutriVida”). This acquisition combined with the successful acquisition of Pro Natura BV was intended to make the Company to be cash flow positive by the end of 2019. The Company then intended to progress with its cannabis initiatives whilst simultaneously growing its revenue generating business lines. However, due to longer than expected delays from the BCSC in the revocation of the February 4, 2019 cease trade order (the “CTO”), the acquisition of NutriVida will no longer be proceeding.
The costs associated with completing all of the continuous disclosure filings, higher than expected professional services bills and now the loss of the acquisition of NutriVida, has put tremendous pressure on the Company’s financial position. Without the ability to raise money due to the CTO, the Company has been forced to cease all non-profitable business divisions until it has the ability to conduct further financings and generate the necessary working capital.
With the changes in the industry and the increased scrutiny from banks and regulators, Abattis has made the decision to dispose of all of its cannabis related businesses in the coming months.
The Company continues to cooperate in any way necessary with the BCSC so that it is able to resume trading as soon as possible. At that time, the Company will look to raise capital and grow shareholder value by looking to grow in its revenue generating operations as well as seeking revenue and profit generating businesses to acquire.
Change of Board of Directors
The Company announces that on October 18, 2019, Mr. Peter Gordon tendered his resignation as a Director. The Company has replaced Mr. Gordon with Mr. Patrick Mitchell, Chief Operating Officer, to the board of directors, and thanks Mr. Gordon for his time and efforts during his time and wishes him all the best in future endeavours.
Mr. Mitchell is a supply chain management professional, following 15 years in the private sector, specializing in food, beverage, nutraceutical, dietary supplement and fertilizer industries. His expertise in project management and corporate operations, both domestic and international, will be an asset to the Company.
About Abattis Bioceuticals Corp.
Abattis has been a life sciences and biotechnology company which aggregated, integrated, and invested in cannabis technologies and biotechnology services for the legal cannabis industry developing in Canada. The Company has now ceased its cannabis initiatives and will be focusing on a new direction to be announced at a later date.
ON BEHALF OF THE BOARD,
ABATTIS BIOCEUTICALS CORP.
Robert Abenante, President & CEO
For more information, please visit the Company’s website at: www.abattis.com.
For inquiries please contact (808) 650-3007 or at [email protected]. Abattis’ investor relations are managed by Canada One Communications Inc.
FORWARD LOOKING INFORMATION
This press release contains forward-looking statements. The use of any of the words including but not exclusive to “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “intends”, “should”, “believe” and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding: (i) the disposition of all cannabis related businesses; (ii) the CTO and revocation thereof; (iii) the trading of the Company’s common shares; and (iv) the Company’s business plan following the resumed trading of the Company’s common shares on the CSE. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Additional risk factors are included in the Company’s Management’s Discussion and Analysis, available under the Company’s profile on www.sedar.com. The forward-looking statements are made as at the date hereof and the Company disclaims any intent or obligation to publicly update any forward-looking statements, where because of new information, future events or results, or otherwise, except as required by applicable securities laws.