31 March 2023
LONDON, ONTARIO--(BUSINESS WIRE)-- Fortune Minerals Limited (TSX: FT) (OTCQB: FTMDF) (“Fortune” or the “Company”) (www.fortuneminerals.com) can now confirm that there will be a delay filing its audited annual financial statements, management discussion and analysis, the related officer certificates, and the Company’s annual information form for the year ended December 31, 2022 (collectively, the “Annual Filings”) by the March 31, 2023 deadline (the “Filing Deadline”).
The audit is in progress and Fortune’s board of directors and its management are working expeditiously to meet its continuous disclosure obligations in relation to the Annual Filings as soon as possible. The auditors have provided an update on their progress and the Company expects a delay of approximately three weeks for completion of the audit. Receipt of the audit report is required for the Company to complete the Annual Filings.
Fortune applied to the Ontario Securities Commission (the “OSC”)for the issuance of a management cease trade order (“MCTO”) in connection with the Company's possible delay in the Annual Filings. However, the OSC determined that it would not grant the Company’s application because the request was made less than two weeks prior to the Filing Deadline. As a result, the Company anticipates that, the OSC will impose a failure to file cease trade order (“CTO”)pursuant to National Policy 11-207. A CTO would prohibit the trading by any person of any securities of the Company in Canada, including trades in the Company's common shares made through the Toronto Stock Exchange. Once issued, the CTO will remain in place until such time as the Annual Filings are completed by the Company.
Fortune has the necessary resources to remedy the default and will comply with the alternative information guidelines set out in NP 12-203, including issuing bi-weekly default status reports by way of news releases, which will be filed on SEDAR. Fortune confirms that there are no insolvency proceedings against it and there is no other material information concerning the affairs of the Company that has not been generally disclosed.