Understanding Magnetic North's Recent Financial Statement Delay
Delayed Financial Filings by Magnetic North Acquisition Corp.
CALGARY, Alberta and TORONTO — Magnetic North Acquisition Corp. (TSXV: MNC; MNC.PR.A) has recently announced a delay in its financial filings, specifically missing the April 30 deadline. The company, referred to simply as Magnetic North, is working diligently on fulfilling its continuous disclosure obligations which include the submission of Annual Financial Statements and other essential documentation.
Key Documents Affected
The delayed files include the Annual Audited Financial Statements for the fiscal year ending December 31, 2024. Additionally, the Management Discussion & Analysis report, along with CEO and CFO certifications related to the annual filings, are also affected. According to National Instrument 51-102, the company was required to file these documents on time, but circumstances have led to this unfortunate delay.
Reasons for Delay
Magnetic North is navigating through challenges primarily associated with a financing transaction that is necessary for the company’s operational capital. These challenges have now been resolved, and the company anticipates finalizing an initial financing within the next five to seven business days.
Management Cease Trade Order
In response to these delays, Magnetic North has submitted a request to the Alberta Securities Commission for a Management Cease Trade Order. This order would restrict the management team from trading the company's securities until the annual filings are complete. As of now, the commission has not reached a decision on this matter.
Progress on Financial Filings
The company is actively pursuing the completion of its annual filings and expects to begin its audit in the last week of May. With an estimated timeline to file the necessary reports by June 30, 2025, Magnetic North is committed to keeping stakeholders informed with regular updates. Following the filings, a news release will be issued to announce their completion.
Compliance and Reporting
Until the Annual Filings are successfully submitted, the company has initiated an insider trading blackout policy. This policy is in line with National Policy 11-207, which governs the practices surrounding failure-to-file cease trade orders. Magnetic North also continues to abide by the provisions set by National Policy 12-203, which mandates bi-weekly default status reports for shareholders.
Current Business Status
Magnetic North assures its shareholders that, except for the updates provided in previous press releases, there have been no new material developments since the last interim financial reports filed on November 28, 2024. As a result, the company confirms there are no ongoing insolvency proceedings affecting its operations.
Company Overview
Founded with the goal of managing and investing in businesses for its shareholders, Magnetic North believes that simply having capital does not guarantee success. Their experienced management teams in both Calgary and Toronto leverage their extensive background in operations and capital markets to bolster the success of their investments. Common shares and preferred shares of Magnetic North are traded on the TSX Venture Exchange under the symbols MNC and MNC.PR.A, respectively.
Frequently Asked Questions
What caused the delay in filing the financial statements?
The delay was mainly due to challenges in securing financing for working capital, which have now been addressed.
What are the consequences of the delay?
Magnetic North is subject to a Management Cease Trade Order, which restricts trading activities until the necessary filings are complete.
When does Magnetic North expect to file the annual financial statements?
The company expects to file the required documents by June 30, 2025.
How is Magnetic North complying with regulatory requirements during this period?
Magnetic North is issuing bi-weekly reports to inform stakeholders about the status of the filings as per alternative information guidelines.
Is there any risk of insolvency for the company?
No, there are currently no insolvency proceedings involving Magnetic North.
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