High River, Alberta – The Western Investment Company of Canada Limited (“Western” or the “Company”) (TSXV: WI) announced today that there will be a continued delay on the filing of its annual financial statements, accompanying management’s discussion and analysis and related chief executive officer (“CEO”) and chief financial officer (“CFO”) certifications for the financial year ended December 31, 2022 (collectively, the “Annual Filings”). This in an update to the news release released on April 28, 2023.
The delay at Western is related to a concurrent delay in the reporting of year end statements of Foothills Creamery Ltd. (“Foothills”), one of Western’s investee companies. Western notes that Ernst & Young LLP (“EY”) are auditors for both Western and Foothills, and that 2022 is EY’s first year on the file. They have determined a need for extra testing and analysis at Foothills.
Western is working closely with its auditor, and its associate Foothills, and is making every effort to submit the Annual Filings in a timely fashion. Based on discussion with the auditor, Western expects the audit work to be completed in the coming days. Should Western not file within a week, Western will provide another update to shareholders on May 23, 2023.
Western CEO Scott Tannas made the following statement. “We support Foothills management as they continue to work with the auditors to complete the 2022 audit, and ensure that Foothills financial statements are accurate in all respects.”
The Company is providing this default announcement in accordance with National Policy 12-203 Management Cease Trade Orders (“NP 12-203”). The Company has obtained from the Alberta Securities Commission, as principal regulator of the Company, a management cease trade order (“MCTO”) under NP 12-203 in respect of the default regarding the Annual Filings. The MCTO prohibits the CEO and the CFO from trading in securities of Western for so long as the Annual Filings are not filed. The issuance of the MCTO does not affect the ability of persons other than the CEO and the CFO of the Company to trade in the Company’s securities.
The Company confirms that it intends to satisfy the provisions of the alternative information guidelines found at sections 9 and 10 of NP 12-203 respecting Cease Trade Orders for Continuous Disclosure Defaults for so long as it remains in default as a result of the late filing of the Annual Filings. During the period of default, the Company will issue biweekly default status reports in the form of further news releases, which will also be filed on SEDAR. The Company confirms that there are no insolvency proceedings against it as of the date of this news release. The Company also confirms that there is no other material information concerning the affairs of the Company that has not been generally disclosed as of the date of this news release.
The Western Investment Company of Canada Limited
President and Chief Executive Officer
This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to future plans, acquisitions, financings and earnings. Statements containing the words: ‘believes’, ‘intends’, ‘expects’, ‘plans’, ‘seeks’ and ‘anticipates’ and any other words of similar meaning are forward-looking. All statements included herein involve various risks and uncertainties because they relate to future events and circumstances beyond Western’s control. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Western’s disclosure documents on the SEDAR website at www.sedar.com. Any forward looking statements are made as of the date of this news release and Western does not undertake to update any forward-looking information except in accordance with applicable securities laws.
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