C21 Investments Inc. (CSE: CXXI) (OTCQX: CXXIF) (“C21” or the “Company“), a vertically integrated cannabis company, today announced that the British Columbia Securities Commission issued a Cease Trade Order in respect of the Company’s securities as a result of a delay in the Company filing its audited annual financial statements and management discussion & analysis for the financial year ended January 31, 2023, and the CEO and CFO certificates, all as required by National Instrument 51-102 – Continuous Disclosure Obligations and National Instrument 52-109 – Certification of Disclosure in Issuers’ Annual and Interim Filings (collectively, the “Documents“).
As stated in the unaudited year-end results news release, dated June 2, 2023, the delay in filing the Documents is to allow our current and previous auditors to address an error in the tax provision for prior years. The Company will be restating the figures related to the tax provision in the accounts for the year ended January 31, 2022 (the “2022 Financial Statements“). This error is approximately $1.1 million (subject to finalisation), which was reflected in the figures included in the news release dated June 2, 2023. The Company was not made aware of this issue with sufficient time to secure a Management Cease Trade Order.
The Company is working diligently and expeditiously with its current and previous auditors to restate the 2022 Financial Statements, complete the audit of the Company’s annual financial statements for the financial year ended January 31, 2023, and file the Documents.
