Management Discussion Related to Delayed Financial Filings
Montreal, Quebec / TheNewswire / May 6, 2019 - St-Georges Eco-Mining Corp. (CSE: SX) (OTC: SXOOF) (FSE: 85G1) would like to inform its shareholders of the reasons for the delays in its financial filings, as well as an update on the timeline for the delivery of its annual audited financial statements.
Unfortunately, one of the key officers of the Company recently had open heart surgery, and another came down with an acute illness at the end of April, which resulted in a stay in the Intensive Care Unit; the latter officer of the Company is still in treatments but in the process of being repatriated from abroad. Consequently, this has delayed the Company's ability to deliver in a timely manner certain key documents and confirmations required for the annual consolidated audit in the last three weeks, as these two officers are integral to the audit process.
The Company and its subsidiaries had to put in place a contingency plan and was able to complete recently the audited annual financial statements and management's discussion & analysis for its largest subsidiary, ZeU Crypto Networks. These financials will be available later today on St-Georges' new website, www.St-GeorgesCorp.com.
St-Georges' management is now convinced that the financial statements will not meet the extended deadline to avoid a Cease Trade Order on the trading of the common shares of the Company until the situation is resolved. The Company expects to resolve this situation within the coming days.
The complexity of the subsidiaries' auditing, now mostly completed, including but not limited to the level of sophistication of the technology being developed in ZeU and the difficulty to assigned valuation, as well as the ever-evolving rules regarding digital assets, created additional challenges for the audits.
Foreign assets and subsidiaries, as well as foreign partners and clients, added to the audit complexity at the parent company level. Transactions with foreign entities required additional levels of verification. A large proposed transaction that was abandoned also caused auditing difficulties, as there was little or no collaboration from entities related to the failed transactions.