HyperBlock Inc. (“HyperBlock” or the “Company“) (CSE: HYPR) announced today that, as a result of the Canadian Public Accountability Board December 2018 guidance document outlining its expectations for audits of companies that own cryptoassets and recommending standards to be adopted in the audit practices of those companies’ auditors, and following the recent resignation of the Company’s auditor, the Company will not be in a position to file its financial statements, management’s discussion and analysis and related officer certifications for the financial year ended December 31, 2018 (collectively, the “Annual Filings“) prior to the April 30, 2019 filing deadline under National Instrument 51-102 – Continuous Discloser Obligations and National Instrument 52-109 – Certification of Disclosure in Issuers Annual and Interim Filings.
The Company has appointed Manning Elliott LLP as its auditor and the audit of the Company’s Annual Filings is ongoing. The Company anticipates that it will be in a position to finalize and issue its financial statements and related disclosures no later than June 30, 2019. The Company does not anticipate any delay in filing its interim financial statements, management’s discussion and analysis, and the related officer certifications for the financial period ended March 31, 2019.
The Company has submitted an application to the Ontario Securities Commission, as principal regulator for the Company, under National Policy 12-203 – Management Cease Trade Orders (“NP 12-203“) requesting that a management cease trade order be imposed in respect of this late filing rather than an issuer cease trade order. The issuance of a management cease trade order generally does not affect the ability of persons who have not been directors, officers or insiders of the Company to trade in their securities. In the event that the management cease trade order is granted, it will be in effect until the default is remedied.
The Company confirms that it intends to satisfy the provisions of the alternative information guidelines under NP 12-203 by issuing bi-weekly default status reports in the form of news releases for so long as it remains in default of its filing requirements. The Company confirms as of the date of this news release that there is no insolvency proceeding against it and that there is no other material information relating to its affairs that has not been generally disclosed.
The Company also is pleased to announce today that Roozbeh Ebaddi, Chief Operating Officer, has joined the Company’s board of directors, subject to CSE approval. Mr. Ebaddi was also Chief Operating Officer and Co-Founder of CryptoGlobal and has a distinguished history in building technology companies. The Company also reports today that it has accepted the resignations of Eric So, Dayna Gibbs, and Tony Gaffney from the Company’s board of directors. The Company is thankful for their contributions to its development and wishes them the very best in their future endeavours. Inder Saini also stepped down as the Company’s Interim Chief Financial Officer, and the recruitment process for a permanent Chief Financial Officer is currently underway. During such recruitment process, Sean Walsh, the Company’s Chief Executive Officer, will act as the Company’s Interim Chief Financial Officer.