SILFF - Silo Wellness Converts Another $149K in Debt to Equity for Improved Financial Position; Announces Annual Filings Delay
Springfield, Oregon--(Newsfile Corp. - February 27, 2023) - Silo Wellness Inc. (CSE: SILO) (OTCQB: SILFF) (FSE: 3K7A), announced that it has reached an agreement with an arm's length creditor to convert CAD$149,235.91 of accounts payable ("AP") debt for common shares at a conversion price of $0.011 per share for a total of 13,566,901 shares with the statutory four-month hold. This conversion was made at the 20-day VWAP, which was approved by the Canadian Securities Exchange (CSE) as price protection and expires on March 20, 2023. This is in addition to the $770,823 of debt load that has been converted to shares this week. The Company will continue to make efforts to restructure debt.
The company also announces that it anticipates the filing of its annual financial statements, management's discussion and analysis and related officer certifications for the financial year ended October 31, 2022 (collectively, the "Annual Filings") will be delayed beyond the required filing deadline under Parts 4 and 5 of National Instrument 51-102 - Continuous Disclosure Obligations and pursuant to National Instrument 52-109 - Certification of Disclosure in Issuer's Annual and Interim Filings, being February 28, 2023 (the "Filing Deadline").
The auditor has commenced the audit process but has determined that it will not be able to complete the audit and file the Annual Filings by the Filing Deadline and this week has requested a two- to three-week extension. The Company intends to work closely with its auditor and expects to file the Annual Filings as soon as possible, and in any event no later than March 28, 2023.
The Company is providing this default announcement in accordance with National Policy 12-203 - Management Cease Trade Orders ("NP 12-203"). The Company has made an application to the Ontario Securities Commission, as principal regulator of the Company, for a management cease trade order ("MCTO") under NP 12-203 in respect of the anticipated default regarding the Annual Filings. The Company has proffered to the regulator that the request is timely pursuant to section 7 of the National Policy, as the Company requested relief from the deadline as soon as it was aware of the impending delay. The granting of the MCTO is at the discretion of the Ontario Securities Commission. The issuance of the MCTO generally will not affect the ability of persons who have not been directors, officers or insiders of the Company to trade in their securities. In the event that the MCTO is granted, it will be in effect until the default is remedied.
The Company intends to follow the provisions of the Alternative Information Guidelines set out in NP 12-203, including the issuance of bi-weekly default status reports in the form of news releases, for as long as the Company remains in default. The Company confirms as of the date of this news release that there is no insolvency proceeding against it and there is no other material information concerning the affairs of the Company that has not been generally disclosed.
Contact:
Mike Arnold, CEO
541-900-5871
IR at silo wellness dot com
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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