TORONTO--(BUSINESS WIRE)--DionyMed Brands Inc. (CSE: DYME)(OTC:DMYEF) (“DionyMed” or the “Company”) reports that it expects to be late in filing its audited financial statements and management’s discussion and analysis for the year ended December 31, 2018 (the “Annual Financial Statements”). In the course of completing the audit, it was determined that, in connection with the 2018 acquisitions of each of DionyMed, Inc. and Herban Industries, Inc. by DionyMed Holdings Inc. reported on the Company’s audited financial statements for the period ended February 28, 2018, rather than applying IFRS 3 business acquisition accounting, continuity of interest accounting has been deemed to be more appropriate under the circumstances. This will require the restatement of the Company’s financial statements for periods reported on prior to December 31, 2018. The changes include eliminating previously-recognized fair value adjustments, including the associated intangible assets and goodwill recognized initially upon acquisition. The impacts of the restatements are non-cash, non-revenue and are expected to be restricted to the Statement of Financial Position. As a result of the restatements, additional work is required by the auditors in order to complete the audit of the 2018 annual financial statements, which work cannot be completed for several weeks.
DionyMed has made an application for a management cease trade order and intends to follow the alternate information guidelines contained in National Policy 12-203 for so long as it has not filed the Annual Financial Statements. DionyMed expects to file the Annual Financial Statements on or before May 31, 2019.
On behalf of the Board,
Edward Fields
Chief Executive Officer
About DionyMed
Founded in 2017, DionyMed is a multi-state cannabis brands platform, supporting cultivators, manufacturers and award-winning brands in the medical and adult-use cannabis markets. DionyMed sells branded products in every category from flower to vape cartridges, concentrates and edibles. DionyMed serves cannabis consumers through retail dispensary distribution and direct-to-consumer fulfillment with its growing portfolio of award-winning brands. Learn more at dionymed.com and follow @DYME_Inc on Twitter and LinkedIn.
Cautionary Statement on Forward-Looking Statements
The information in this document contains certain forward-looking statements with respect to activities of the Company, based on assumptions about future courses of action, including with respect to the filing of the Annual Financial Statements. Although management has a reasonable basis for the conclusions drawn, risk factors and uncertainties may cause actual results to differ materially from those currently anticipated in such statements. In view of these uncertainties we caution readers not to place undue reliance on these forward-looking statements. Statements made in this document are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any statements made herein, except in accordance with applicable securities laws.