1933 Industries faces trading restrictions amid delayed financial filings
- 1933 Industries Inc. filed for a Management Cease Trade Order due to an inability to meet financial statement deadlines.
- The company retained its current auditor after negotiations, who will complete the audit by January 27, 2025.
- The MCTO restricts trading of company securities by insiders while allowing non-insider trading to continue.
In Canada, 1933 Industries Inc., a cannabis cultivator and producer based in Nevada, announced on November 29, 2024, that it could not meet the deadline for its audited annual financial statements for the year ending July 31, 2024. Due to issues with audit fee negotiations, the company considered replacing its auditor but ultimately decided to retain its current auditor, who has committed to completing the audit by January 27, 2025. To address this delay, 1933 Industries has applied for a Management Cease Trade Order (MCTO), which will restrict trading in its securities by certain insiders, including the Chairman, CEO, and other officials, while allowing non-insiders to continue trading. This MCTO serves as a temporary measure while the company continues to comply with reporting requirements and keeps the public informed through bi-weekly updates on its financial status. Notably, the company clarified that it is not under any insolvency or specified defaults under applicable regulations and maintains transparency about its financial operations. The MCTO application reflects the serious nature of regulatory compliance in the cannabis industry, emphasizing the ongoing challenges that companies face concerning financial reporting and auditor negotiations.