Ceylon Graphite Updates on Auditor Transition and Filings

Author: Olivia Taylor Updated: 09-10-2024 05:00 PM

Ceylon Graphite's Current Filing Status and Challenges

Ceylon Graphite Corp. (TSX-V: CYL) is providing an update on its filing status regarding its audited financial statements. The company recently encountered some unexpected hurdles that may affect its ability to meet designated filing deadlines, specifically those set by the British Columbia Securities Commission.

Understanding the Management Cease Trade Order

On July 30, the Company informed stakeholders that it would not be able to file its Annual Filings for the year ended March 31, 2024, by the established deadline of July 29, 2024. This news prompted the British Columbia Securities Commission to implement a management cease trade order (MCTO), requiring Ceylon Graphite to complete its filings by September 27, 2024.

Request for Extension

Given the circumstances, Ceylon Graphite has formally requested an extension for submitting these filings to October 11, 2024. This is primarily due to events outside the Company’s control that have complicated its auditing process.

Factors Contributing to Filing Delays

The significant delay in completing the Annual Filings is attributed to two main factors. Firstly, Ceylon Graphite is undergoing an auditor transition from Manning Elliott LLP to MNP LLP. While the New Auditors have initiated their work, negotiations regarding the terms of the audit have extended the timeline. Secondly, the temporary incapacitation of the Chief Financial Officer due to serious health issues has further compounded these delays.

Efforts Towards Resolution

Despite these challenges, Ceylon Graphite is actively working with both its former and new auditors to expedite this transition. The Company remains committed to meeting the revised filing deadline and anticipates submitting the necessary documents by October 11, 2024.

Mandatory Reporting and Investor Updates

In compliance with NP 12-203, Ceylon Graphite is mandated to issue bi-weekly status reports during the MCTO. The Company reassures investors that there have been no significant changes to the information disclosed in the initial news release from July 30, 2024. Ceylon confirms its intentions around maintaining transparency and fulfilling all reporting obligations.

Commitment to Transparency

As of the date of this update, the Company asserts that it has not encountered additional defaults apart from what was already disclosed, ensuring that all material information concerning its affairs is provided to the public.

About Ceylon Graphite Corp.

Ceylon Graphite Corp. is a publicly listed entity on the TSX Venture Exchange, focused on graphite mining and the development of innovative products utilizing graphene and graphite. Renowned for producing some of the highest-grade graphite globally, the company is well-positioned to cater to the burgeoning markets for electric vehicles, battery storage, construction, healthcare, paints, and coatings.

Potential for Future Growth

With a strong commitment to exploring new applications for its high-quality graphite, Ceylon Graphite is optimistic about its role in supporting the growth of sustainable technologies.

For further details about Ceylon Graphite, potential investors and interested parties can reach out directly to the Company’s contact information below:

Sasha Jacob, Chief Executive Officer
Rita Thiel, Chair of the Board of Directors
Email: info@ceylongraphite.com
Corporate Communications: +1(604) 924-8695

Frequently Asked Questions

What is the reason for Ceylon Graphite's filing delays?

The delays are attributed to an auditor transition and health issues faced by the Chief Financial Officer.

What are the new deadlines for the Annual Filings?

Ceylon Graphite has requested an extension to file its Annual Filings by October 11, 2024.

What is a Management Cease Trade Order (MCTO)?

An MCTO is a regulatory order that prohibits certain trading activities, allowing a company to address filing deficiencies while maintaining transparency with investors.

What does Ceylon Graphite do?

Ceylon Graphite is engaged in mining for high-grade graphite and developing applications for graphene and graphite in various markets, including electric vehicles and construction.

How can investors stay updated on the company's status?

Investors can refer to Ceylon Graphite's bi-weekly status reports and official communications for the latest information.

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