VANCOUVER, May 29 /PRNewswire-FirstCall/ -- Rockwell Diamonds Inc. ("Rockwell" or the "Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) today announced the delayed filing of the Company's financial statements for the year ended February 28, 2009, including the related management discussion and analysis, annual information form and CEO and CFO certifications (collectively, the "Required Documents").
Management and the Audit Committee concur with the Company's auditors that the Company will be unable to file the Required Documents before the required deadline primarily because of an apparent material breakdown in the Company's internal controls, which in management's view are related in part to changes arising over the last approximately six months including a change of the Company's Chief Financial Officer, change of year-end and change of auditors.
The Company is working diligently with its accounting staff and its auditors to address the issues raised by the auditors and anticipates that it will be in a position to file the Required Documents on or before June 26, 2009.
In the interim, the Company will apply to the applicable securities regulatory authorities for a management cease trade order related to the Company's securities to be imposed against some or all of the persons who are or have been directors, officers or insiders of the Company for so long as the Required Documents are not filed. If granted, a management cease trade order would not generally affect the ability of persons who have not been directors, officers or insiders of the Company to trade the securities of the Company. However, the applicable securities regulatory authorities, in their discretion, may determine that it would be appropriate to issue a general issuer cease trade order which would prohibit trading of the Company's securities.
Until the Required Documents are filed, the Company intends to provide information in accordance with National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults.
John Bristow President and CEO No regulatory authority has approved or disapproved the information contained in this news release.
Rockwell Diamonds Inc.
CONTACT: on Rockwell Diamonds Inc., please visit the Company's website
at http://www.rockwelldiamonds.com/ or contact Investor Services at (604) 684-6365 or
within North America at 1-800-667-2114
