BellRock Brands Inc. (“BellRock” or the “Company”) (CSE: BRCK.U), an industry-leading cannabis consumer packaged goods (“CPG”) multi-state operator, announces that it has been issued a Cease Trade Order (“CTO”) by the British Columbia Securities Commission by virtue of having not filed the following periodic disclosure documents by the applicable filing deadlines:
- annual audited financial statements for the year ended December 31, 2020;
- interim financial report for the period ended March 31, 2021;
- management’s discussion and analysis for the periods ended December 31, 2020 and March 31, 2021; and
- certification of annual and interim filings for the periods ended December 31, 2020 and March 31, 2021.
The Company continues to operate normally and is working diligently and expeditiously with its auditors to complete the annual filings and the interim filings as soon as possible. The cause of the delay is not material to the Company or its operations. It is primarily a result of the business combination of Dixie Brands and BR Brands that closed on October 31, 2020 and the complexity of consolidating several privately-held companies that were not subject to the same financial reporting requirements as Dixie Brands.
Revocation of the CTO is expected to occur within a few days after the required filings are made.
Despite the CTO, a beneficial security holder of the Company who is not, and was not at the date of the CTO, an insider or control person of the Company, may sell securities of the Company acquired before the date of the CTO if: (a) the sale is made through a “foreign organized regulated market”, as defined in section 1.1 of the Universal Market Integrity Rules of the Investment Industry Regulatory Organization of Canada; and (b) the sale is made through an investment dealer registered in a jurisdiction of Canada in accordance with applicable securities legislation. Holders of the Company’s securities are urged to consult with their own investment advisors or legal counsel about the implications of the CTO.