MYCOF - Mydecine Announces Intention to Refile Certain Financial Statements and Applies for Management Cease Trade Order
(TheNewswire)
VANCOUVER, British Columbia – TheNewswire - April 25, 2024 —Mydecine Innovations Group Inc. (the “ Company ”) (CSE:MYCO) (FSE:0NF0) (OTC:MYCOF) (AQSE:MYIG) announcesthat as a result of a review by the British Columbia SecuritiesCommission (the “ BCSC ”), the Company is issuing this pressrelease to clarify its disclosure.
The Company will restate its previously filed auditedfinancial statements for the fiscal year ended December 31, 2022, inthe comparative period of the audited annual financial statements forthe financial year ended December 31, 2023 (the “ Audited Financial Statements ”).
The Company has applied to the BCSC for a temporarymanagement cease trade order (the “ MCTO ”) inconnection with the Company’s filing of the Audited FinancialStatements and the management discussion and analysis for thefinancial year ended December 31, 2023 (the “ MD&A ”).
INTENTION TO REFILE CERTAIN FINANCIALSTATEMENTS
The Company advises that the Company’s previouslyfiled audited financial statements for the fiscal year ended December31, 2022, will be restated in the comparative period of the AuditedFinancial Statements.
During the fiscal year ended December 31, 2022, theCompany received 18,000,000 units of PanGenomic Health Inc.(“ PanGenomic ”) pursuant to the sale of its wholly owned subsidiary,Mindleap Health Inc (“ Mindleap ”). On January 2, 2023 and January3, 2023, the Company entered into share sale agreements and sold15,250,000 PanGenomic common shares at a price of $0.117 per share inexchange for promissory notes totaling $1,785,366. PanGenomic’sshare price on January 2, 2023 and January 3, 2023 was $0.27 and$0.295, respectively. The Company realized a loss on disposal on thesale of the PanGenomic common shares of $ $1,285,366. On February 23,2023, the Company sold 18,000,000 PanGenomic warrants for grossproceeds of $25,200 and realized a loss on disposal of warrants of$2,807,218.
As of September 30, 2023, the Company has collected$500,000 on the promissory notes of $1,785,366 and the Companyrecorded an expected credit loss provision of $1,285,366 on theuncollected amounts.
Upon further review, as at December 31, 2022, the fairvalue of the 15,250,000 PanGenomic common shares did not utilize theappropriate level 1 fair value input for the purposes of theinternational financial reporting standards and as a result will beappropriately measured using PanGenomic’s trading price as atDecember 31, 2022.
In addition, the Company’s secured convertibledebenture holder held a general security interest on the Company’sassets, including Mindleap. The holder agreed to waive its securityinterest on the Mindleap asset in exchange for 250,000 common sharesof the Company and an amount payable of $660,000. Upon further review,as at December 31, 2022, the above noted transaction was not recordedand will be recorded in the restatement. The Audited FinancialStatements will reflect this change in the comparative period. Theeffect of the restatement will be a decrease in the Company’s cashposition and an increase in the Company’s debt and expenses.
The Company will be late in filing the AuditedFinancial Statements with restated comparative December 31, 2022figures.
The restated comparative figures of the AuditedFinancial Statements will replace and supersede the respectivepreviously filed financial statements and management’s discussionand analysis for such periods (collectively, the “ Previous Documents ”). The Previous Documents should no longer be reliedupon.
APPLICATION FOR MANAGEMENT CEASETRADE ORDER
The Company has applied for an MCTO on April 23, 2024under National Policy 12-203– Management Cease Trade Orders to secureadditional time to finalize its Audited Financial Statements andMD&A and the applicable CEO and CFO certifications (collectively,the “ AnnualFilings ”). The Company’s delay in completingits Annual Filings is a result of, amongst a variety of reasons, theCompany being required to restate its December 31, 2022 audited financial statements and the Company’s recentchange of auditor. The Company is working with its new auditor andaccounting team to file its Annual Filings.
On behalf of the Boardof Directors
MYDECINE INNOVATIONSGROUP INC.
Joshua Bartch
Chief Executive Officer
contact@mydecineinc.com
About Mydecine Innovations Group Inc.
Mydecine Innovations Group™ is a biotechnologycompany developing the next generation of innovative medications andtherapies to address mental health disorders such as nicotineaddiction and posttraumatic stress disorder (PTSD). The core strategyblends advanced technology with an elaborate infrastructure for drugdiscovery and development. Mydecine’s dedicated multinational teamconstantly develops new paths for breakthrough treatment solutions inareas with considerable unmet needs. By collaborating with some of theworld’s leading specialists, the Company aspires to responsiblyspeed up the development of breakthrough medications to providepatients with safer and more effective treatment solutions. At thesame time, Mydecine’s approach focuses on the next generation ofpsychedelic medicine by creating innovative compounds with unmatchedtherapeutic potential through its clinical trial efforts withworld-class scientific and regulatory expertise.
Learn more at: https://www.mydecine.com/ and follow thecompany on Twitter, LinkedIn, YouTube, and Instagram.
Forward-lookingInformation Statement
This news release may containcertain “forward-looking statements” and “forward-lookinginformation” within the meaning of applicable Canadian and UnitedStates securities laws. When used in this news release, the words“anticipate”, “believe”, “estimate”, “expect”,“target”, “plan”, “forecast”, “may”, “schedule”and other similar words or expressions identify forward-lookingstatements or information. These forward-looking statements orinformation may relate to the anticipated timing for the filing of theAnnual Filings, the previously filed audited financial statements forthe fiscal year ended December 31, 2022, and the MCTO application andother factors or information. Such statements represent theCompany’s current views with respect to future events and arenecessarily based upon a number of assumptions and estimates that,while considered reasonable by the Company, are inherently subject tosignificant business, economic, competitive, political and socialrisks, contingencies and uncertainties. Many factors, both known andunknown, could cause results, performance or achievements to bematerially different from the results, performance or achievementsthat are or may be expressed or implied by such forward-lookingstatements. The Company does not intend, and does not assume anyobligation, to update these forward-looking statements or informationto reflect changes in assumptions or changes in circumstances or anyother events affections such statements and information other than asrequired by applicable laws, rules and regulations.
Copyright (c) 2024 TheNewswire - All rights reserved.