KELOWNA, BC – February 1, 2019 – ProSmart Enterprises Inc. (TSXV:PROS) (“ProSmart” or the “Company”) wishes to announce a cease trade order has been issued by the British Columbia Securities Commission on February 1, 2019 for not filing its annual financial statements for the year ended September 30, 2018, including the related management discussion and analysis, Annual Information Form and CEO and CFO certifications (collectively, the “Annual Financial Filings”). The Annual Financial Filings were required to be filed by January 28, 2019.
The delay in filing the 2018 Annual Audited Financial Statements is principally related to the potential sale of substantially all of the Company’s assets as announced in its December 14, 2018 press release announcing the non-binding letter of intent. Management feels that due to the significance of the transaction, it needs to have the negotiations develop further in order to properly reflect the transaction in its audited financial statements.
The Company is working with its auditor, Davidson & Company, on the audit procedures required to complete the 2018 Annual Financial Filings and expects to be able to file the Annual Financial Filings within the next four to six weeks. The Company will provide updates as further information relating to the Annual Financial Filings becomes available.
Until the Annual Financial Filings are filed, the Company intends to provide information in accordance with National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults.
On behalf of ProSmart Enterprises Inc.
Co-Founder & Chief Executive Officer
About ProSmart Enterprises Inc.
ProSmart Enterprises Inc. (TSX-V:PROS) is the parent company of SportgoTM, a global online network connecting sports fans, teams and brands and is an emerging leader in sports content marketing through online tools and mobile apps. SportgoTM works with over 1,500 governing bodies in more than 100 countries and provides unprecedented access to the $1.3 trillion sports market1 through its proprietary Marketplace Engine. SportgoTM is also the first-and-only online network to provide educational content created exclusively by hall-of-fame and professional athletes, which has been a key driver in user growth.
1 Source: Plunkett Research. Ltd.
For more information on ProSmart and SportgoTM, please visit the following links:
ProSmart Enterprises Inc. — http://prosmartinc.com
SportgoTM — https://www.sportgo.com/
For further information please contact:
The shares of ProSmart Enterprises Inc. trade publicly on the TSX Venture Exchange under the symbol TSXV:PROS.
“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”
Forward-looking Statements: Certain statements in this press release are “forward-looking statements” which reflect the Company’s current expectations and projections about future events and financial trends that it believes might affect its financial condition, results of operations, business strategy and financial needs. In some cases, these forward-looking statements can be identified by words or phrases such as “may”, “might”, “will”, “expect”, “anticipate”, “estimate”, “intend”, “plan”, “indicate”, “seek”, “believe”, “estimates”, “predicts” or “likely”, or the negative of these terms, or other similar expressions intended to identify forward-looking statements. Whether actual results, performance or achievements will conform to the Company’s expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including without limitation, those risks and uncertainties discussed elsewhere on the website at www.prosmartinc.com and in the Company’s filings on SEDAR. Investors should not place undue reliance on forward-looking information. The forward-looking information contained herein is made as of the date hereof and is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.