GRAFLORA ORGANICS ANNOUNCES FURTHER UPDATE TO ITS ANNUAL FILING AND UPDATE ON Q1 FILING AND CLOSING OF NON-BROKERED PRIVATE PLACEMENT
Further to Agraflora Organics International Inc.'s news release dated April 17, 2020, the company is expecting to file its audited financial statements for the year ended Dec. 31, 2019, by the extension date of June 15, 2020, pursuant to British Columbia Instrument 51-515 -- Temporary Exemption from Certain Corporate Finance Requirements, and continues to work diligently with its auditors to file the annual filings by June 15, 2020.
Update on Q1 filing
The company will also be relying on the temporary exemption pursuant to B.C. Instrument 51-515 in respect to the following provisions:
The requirement to file interim financial statements for the three months ended March 31, 2020, within 60 days after the end of the company's interim period as required by Section 4.4(b) of National Instrument 51-102 -- Continuous Disclosure;
The requirement to file management discussion and analysis for the period covered by the financial statements within 60 days after the end of the company's interim period as required by Section 5.1(2) of NI 51-102;
The requirement to file certifications of the financial statements pursuant to Section 5.1 of National Instrument 52-109 -- Certification of Disclosure in Issuer's Annual and Interim Filings and Section 4.4(b) (being the filing deadline for interim financial statements) of NI 51-102.
The company is continuing to work diligently to file the interim filings by July 16, 2020.
The company confirms that there have been no material developments, other than those disclosed through news releases and Form 7 monthly progress reports filed on the company's profile with the Canadian Securities Exchange, since the filing of its condensed interim consolidated financial statements for the period ended Sept. 30, 2019.
Additionally, the company advises that management and other insiders of the company are subject to a trading blackout policy as described, in principle, in Section 9 of National Policy 11-207 -- Failure to-File Cease Trade Orders and Revocations in Multiple Jurisdictions.
Closing of non-brokered private placement
The company has closed a non-brokered private placement of up to of 20.7 million of the company at a price of 7.5 cents per unit for gross proceeds of $1,552,500. Each unit consists of one common share and one transferable common share purchase warrant. Each warrant entitles the holder thereof to purchase one additional common share of the company for a period of five years from closing at a price of 10 cents per common share. All securities issued pursuant to the private placement are subject to a statutory four-month hold period pursuant to applicable securities laws of Canada.
Proceeds from the offering will be used to advance the company's projects and for working capital purposes. In connection with the offering, finders' fees of $3,150 cash and 42,000 warrants with the same terms as noted herein have been paid to PI Financial Corp., a qualified third party.
About Agraflora Organics International Inc.