Lendified Provides Update on Management Cease Trade Order Application
Toronto, Ontario--(Newsfile Corp. - July 3, 2020) - Lendified Holdings Inc. (formerly, Hampton Bay Capital Inc.) (TSXV: LHI) (the "Company" or "Lendified") today announced, further to its press release dated June 25, 2020, that the Ontario Securities Commission has notified the Company that its application for a management cease trade order was not approved. As the Company believes it will not be in a position to file the audited financial statements (the "Audited Financial Statements") for the period ended December 31, 2019 for Lendified PrivCo Holding Corporation ("Subco"), a wholly-owned subsidiary of the Company acquired through the Company's qualifying transaction announced on December 24, 2019 (the "Qualifying Transaction"), the interim financial report for Subco for the period ended March 31, 2020 and the interim financial report for the Company for the period ended March 31, 2020 (together, the "Required Filings") within the prescribed period required under applicable securities laws (including any temporary relief measures), it is anticipated that the Company will be subject to a failure-to-file cease trade order ("FFCTO") after July 3, 2020 (the date the Audited Financial Statements are due to be filed) until such time as the Company is able to complete the filing of the Required Filings and successfully apply for a revocation of the FFCTO. The Company, its advisors and its independent auditor are continuing to work diligently to complete the necessary work and the Company intends to make the Required Filings as soon as possible. The FFCTO will affect trading in all securities of the Company in Canada and will remain in effect until such time as the Company has made the Required Filings. The FFCTO will result in a halt in trading of the Company's shares on the TSX Venture Exchange. If the Required Filings are made within 90 days of the date of the FFCTO, such filings will constitute the Company's application to have the FFCTO revoked. The Company will issue a further news release when the Required Filings have been made. There can be no assurances that the FFCTO, once imposed, will be revoked on the timeline contemplated by the Company or at all.
It is anticipated that the FFCTO will affect the closing of the private placement offering of up to $1,427,318 of securities of the Company announced June 30, 2020 (the "Offering") until the FFCTO is revoked, either partially to permit the Offering to proceed, or in full. There can be no assurances that the regulators will grant a partial revocation. The Company has not accepted any of the subscriptions and has not issued any securities under the Offering. At this time, the Company continues to evaluate options to preserve shareholder value and provide the Company with the required financial and operational resources required for ongoing operations. During the FFCTO period the Company will continue to update shareholders on the progression of these initiatives.
The Company also announces that its audit committee has been reconstituted to consist of Perry Dellelce, Troy Wright and Kevin Clark, who has advised he will remain on the Board until July 30, 2020.
ABOUT LENDIFIED HOLDINGS INC.
Lendified, a company located in Ontario, Canada, is a leading Canadian FinTech company operating both a lending platform which provides working capital loans to small businesses across Canada through its wholly-owned subsidiary, Lendified Inc., as well as a software as a service technology platform providing AI-enabled credit origination and analytics to financial institutions across Canada through its wholly-owned subsidiary, JUDI.AI.
For further information regarding Lendified, please contact:
Troy Wright, Chief Executive Officer and Director
Neither the TSXVE nor its Regulation Services Provider (as that term is defined in the policies of the TSXVE) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan, "estimate", "expect", "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including whether the Company will be successful in filing the Required Filings, obtaining a revocation of the FFCTO if one is imposed, either partially or in full, implementing its strategies to place the Company on a better financial footing or whether the effects of the COVID-19 pandemic will be even more severe than it has been to date, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industries in which the Company participates; others are more specific to the Company. The Company's ongoing quarterly filings should be consulted for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. Management assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.
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