XTM Inc. ("XTM" or the "Corporation") (QB: XTMIF / CSE: PAID / FSE: 7XT) is providing an update to its previously announced management cease trade order (the "MCTO") granted by the Ontario Securities Commission (the “OSC”) under National Policy 12-203 - Management Cease Trade Orders ("NP 12-203").
Pursuant to the MCTO, the Corporation’s CEO, Marilyn Schaffer, and the Corporation’s CFO, Paul Dowdall, may not trade in securities of the Corporation until such time as the Corporation files its annual audited financial statements, annual management's discussion and analysis and related certifications for the year ended December 31, 2022 (collectively, the "Required Documents"), and the OSC revokes the MCTO. The delay in filing the required documents is in connection with to a recent change of auditor for the Corporation and audit requirements resulting from increased transaction volume experienced by the Corporation.
The MCTO does not affect the ability of other shareholders to trade their securities.
In addition to the late filing of the Required Documents, the Company does not believe it will be in a position to file its interim financial statements, management’s discussion and analysis and related certifications for the three-month financial period ended March 31, 2023 (the “Additional Disclosure Documents”).
As such, the Company has requested, and the OSC recently confirmed, an extension to the MCTO until July 17, 2023 for the Company to file their Required Documents and Additional Disclosure Documents. The Company expects to file the Additional Disclosure Documents concurrently with the filing of the Required Documents as soon as it has obtained the necessary approvals, subject to further unforeseen delays.
XTM also confirms that it intends to satisfy the provisions of NP 12-203 and issue bi-weekly default status reports for so long as they remain in default of the financial statement filing requirement, containing any material changes to the information in this release, all actions taken by XTM to remedy the default, particulars of any failure by the Corporation to fulfill these provisions, any subsequent defaults of XTM requiring a default announcement and any other material information concerning the affairs of the Corporation not previously disclosed.
XTM, www.xtminc.com, is a Miami and Toronto-based fintech innovator in the neo-banking space, helping businesses and service workers in the hospitality and personal care space disseminate and access earned wages and gratuities. XTM's Today™ Solution, comprised of a free mobile app and a Visa or Mastercard debit card with free banking features, is used by thousands of restaurants, salons and staff across Canada and the United States. XTM is a global card issuer and real-time payment specialist. Our technology is used by Restaurants, Salons and service staff at no charge to automate and expedite Earned Wage and Gratuity Access, increasing time and attendance and eliminating cash from ecosystems. XTM's Today solution drives operational efficiencies and delivers a bespoke user experience designed specifically for service workers.
The CSE has not approved nor disapproved the contents of this press release, and the CSE does not accept responsibility for the adequacy or accuracy of this release.
Disclaimer for Forward-Looking Statements
This press release contains "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "likely" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking information in this press release includes, without limitation, statements relating to the date of filing of the Required Documents and Additional Disclosure Documents and the satisfaction of the provisions of NP 12- 203.
By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
The forward-looking information contained herein is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management on the date such forward looking information is made. The Corporation undertakes no obligation to update or revise any forward looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward looking information, except as required by applicable law.