Toronto, Ontario--(Newsfile Corp. - May 19, 2016) - Enerdynamic Hybrid Technologies Corp. (TSXV: EHT) ("EHT" or the "Company") is providing this default status report in accordance with National Policy 12-203 - Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-203"). On October 2, 2015, the Company announced that it is not in compliance with the requirements of Section 4.1 of National Instrument 51-102 - Continuous Disclosure Obligations ("NI 51-102") with respect to filing audited annual comparative financial statements given that the Company's comparative financial statements as at and for the year ended November 30, 2013, as included in the November 30, 2014 audited annual financial statements had not been audited (the "Initial Default").
As a result of the Initial Default, the Ontario Securities Commission (the "OSC") granted (i) a permanent management cease trade order on October 28, 2015 in respect of the Company's Chief Executive Officer and Chief Financial Officer at such time, (ii) a permanent management cease trade order on November 4, 2015 in respect of the Company's former Chief Executive Officer, Mr. Roman Eder, and (iii) a permanent management cease trade on November 16, 2015 in respect of the Company's interim Chief Financial Officer, Mr. David Prue (collectively, the "MCTOs").
Further to the Company's news release, dated May 19, 2016, disseminated earlier today, the Company confirms that it has re-filed its consolidated financial statements with respect to the year ended November 30, 2014 (the "2014 Financial Statements"), which include audited comparative consolidated financial statements with respect to the year ended November 30, 2013. The re-filed 2014 Financial Statements include an independent auditor's report, dated May 18, 2016, issued by Richter LLP, for the year ended November 30, 2014, as well as an independent auditor's report, dated May 18, 2016, issued by BDO Canada LLP, for the year ended November 30, 2013. The re-filing of the 2014 Financial Statements resolved the Initial Default.
The Company remains in default of the continuous disclosure requirements set forth in Parts 4 and 5 of NI 51-102 and National Instrument 52-109 - Certification of Disclosure in Issuers' Annual and Interim Filings (the "Unresolved Defaults"), as (i) it has failed to meet the filing deadline of March 29, 2016 in respect of the filing of its audited annual consolidated financial statements, accompanying management's discussion and analysis, and the related officer certifications for the financial year ended November 30, 2015 (collectively, the "2015 Filings"), and (ii) it has failed to meet the filing deadline of April 29, 2016 in respect of the filing of its interim consolidated financial statements, accompanying management's discussion and analysis, and the related officer certifications for the interim period ended February 28, 2016 (collectively, the "2016 Q1 Filings"). The Company's failure to satisfy the aforementioned filing deadlines is a consequence of the delay in re-filing the 2014 Financial Statements, as the completion of the 2014 Financial Statements was required to finalize the 2015 Filings and the 2016 Q1 Filings. In light of the completion and re-filing of the 2014 Financial Statements, the Company expects to complete its 2015 Filings and 2016 Q1 Filings imminently.
As a consequence of the Unresolved Defaults, the MCTOs remain in place, and the Company continues to be noted in default on the OSC public default list.
The Company is required to provide bi-weekly status reports in accordance with NP 12-203, until such time that the MCTOs are revoked or a general cease trade order is issued.
The Company confirms that, except as otherwise specified herein, there are no material changes to the information contained in the bi-weekly status reports disseminated as of the date hereof. The Company further confirms that there has been no failure by the Company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines and that there is no other material information relating to the status of the Initial Default or the Unresolved Defaults, and its affairs, that has not been generally disclosed.
As previously announced, the Company confirms that it will continue to satisfy the provisions of the alternative information guidelines under NP 12-203 for so long as it remains in default. During the period of default, the Company will continue to issue bi-weekly default status reports in the form of further press releases, which will also be filed on SEDAR.
Further to the Company's news release, dated February 3, 2016, the Company wishes to confirm that the board of directors of the Company has formally appointed Mr. John Gamble as the Chief Executive Officer and President of the Company, effective as of April 26, 2016.
About EnerDynamic Hybrid Technologies
EHT delivers proprietary, turn-key energy solutions which are intelligent, bankable and sustainable. Most energy products and solutions can be implemented immediately wherever they are needed. EHT stands above its competitors by combining a full suite of solar PV, wind and battery storage solutions, which can deliver energy 24 hours per day in both small-scale and large-scale format. In addition to traditional support to established electrical networks, EHT excels where no electrical grid exists. Through its recent acquisitions and new product developments, the organization now supplies advanced material solutions for various industries in combination with energy saving and energy generation solutions. EHT's core expertise lies in the development of innovative composite material systems with a full integration of smart energy solutions, which are processed through the use of EHT's proprietary production technologies into attractive applications- primarily modular homes, cold storage facilities, modular hospitals, schools, hotels and residential and commercial buildings.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The statements herein that are not historical facts are forward-looking statements.Forward-looking information involves risk, uncertainties and other factors that could cause actual events, results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements regarding, among other things, the remedy of the Unresolved Defaults. Although EHT believes that the assumptions used in preparing the forward-looking information in this news release are reasonable, including that all necessary regulatory approvals will be obtained in a timely manner, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. EHT disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable securities laws.
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Company Website: www.ehthybrid.com
Company Website: www.ehthybrid.com