Edmonton, Alberta--(Newsfile Corp. - September 1, 2022) - Radient Technologies Inc. (TSXV: RTI) ("Radient" or the "Company") provides a default status report in accordance with the alternative information guidelines set out in National Policy 12-203 - Management Cease Trade Orders ("NP 12-203") as well as an update on its secured loan facility with Moskowitz Capital Mortgage Fund II Inc. ("Moskowitz"). In addition, the Company is pleased to announce the appointments of Jocelyne Lafreniere, a long-time director, as the chairperson of the board of directors of the Company (the "Board") and Danesh Varma as a director of the Company.
MCTO Status Update
On July 26, 2022, the Company announced that it applied for a management cease trade order ("MCTO") with the applicable securities regulatory authorities in Canada on the basis that the Company would be unable to file its audited annual financial statements for its financial year ended March 31, 2022 and the related Management's Discussion and Analysis and Certifications by the Chief Executive Officer and Chief Financial Officer (collectively, the "Required Filings") by the applicable filing deadlines (the "Original Announcement") due to unexpected delays the Company's auditor is experiencing in connection with its audit of Tunaaaa Xtracts Inc. ("Tunaaaa"), a company acquired by the Company in early 2022.
The MCTO was issued on August 3, 2022, and prohibits trading in securities of the Company, whether direct or indirect, by the Company's Chief Executive Officer and Chief Financial Officer. The issuance of the MCTO generally does not affect the ability of persons who have not been directors, officers or insiders of the Company to trade in their securities.
The Company's management continues to work diligently to facilitate the completion by the auditor of its audit of Tunaaaa so that the Company can complete the Required Filings as soon as possible. Management now anticipates, but cannot assure, that the Required Filings will be filed by September 29, 2022.
Other than as set out herein, the Company confirms that (a) there have been no changes to the information contained in the Original Announcement that would reasonably be expected to be material to an investor, (b) there has been no failure by the Company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines under NP 12-203, (c) there has not been any other specific default by the Company under NP 12-203, and (d) there is no other material information concerning the affairs of the Company that has not been generally disclosed.
The Company confirms it will continue to satisfy the provisions of the alternative information guidelines set out in NP 12-203 so long as it remains in default of the requirement to file the Required Filings.
Loan Facility Demand
On August 26, 2022, Moskowitz issued a demand notice to the Company for payment of approximately $10.5 million, plus accrued costs and additional interest to the date of payment pursuant to the terms of a secured loan facility (the "Facility") guaranteed by the Company. The Facility is secured by a first priority mortgage on the land and buildings located at 4035, 4029, and 4025 101 St. N.W., Edmonton, Alberta. For more information about the Facility, please see Radient's press release dated April 4, 2022, which is available under the Company's SEDAR profile at www.sedar.com. The Company is evaluating its options and will provide updates by way of future press releases as new developments arise.
The Company is also pleased to announce the appointments of Jocelyne Lafreniere, a long-time director, as the chairperson of the Board and Danesh Varma as a director of the Company. Ms. Lafreniere's appointment is effective immediately and follows the resignation of Francesco Ferlaino as a director and the chairperson of the Board. Mr. Varma's appointment will be effective upon satisfactory security clearance by Health Canada.
Management and the Board express their gratitude to Mr. Ferlaino for his efforts and extensive contributions and wish him well in his future endeavours.
Danesh Varma established himself in the Canadian business community as a senior audit manager with Deloitte's in Canada. In addition, he has served with reporting issuers, both as CFO and as a Director in both Canada and the United States, for companies such as Labrador Iron Mines Holdings and Brookfield Investment Corporation. Now a U.K. resident, Mr. Varma is active in the investment and private equity fields.
Radient is a commercial manufacturer of diverse, novel and high-quality cannabis extracts and packaged products. Radient develops specialty products and ingredients that contain a broad range of cannabinoid and terpene profiles while meeting the highest standards of quality and safety. Radient is focused on innovation with expertise in formulations and technologies offering unique solutions in the cannabis and wellness space. RadientInc.com
For more information, please contact:
Harry Kaura, CEO & Director
Ph: 780 465 1318
Cautionary Note Regarding Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the duration of the MCTO, the Company's ability to make the Required Filings prior to September 29, 2022, the demand by Moskowitz for repayment of amounts guaranteed by the Company under the Facility, and the appointment of Mr. Varma pending security clearance by Health Canada. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Radient, as the case may be, to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; risks associated with operation in the cannabis sector; and other risks inherent in the cannabis industry. Although Radient has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Radient does not undertake to update any forward-looking information, except in accordance with applicable laws.
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