Ikänik Farms Announces Late Filing of 2021 Annual Financial Statements

TORONTO, May 2, 2022 /PRNewswire/ – Ikänik Farms, Inc. (CSE: IKNK.U) (FSE: DFMA) (the “Company” or “Ikänik Farms”) announces that it will not be able to file its annual audited consolidated financial statements, the related MD&A and related CEO and CFO certifications for the year ended December 31, 2021 (the “Annual Financial Documents”) by the May 2, 2022 filing deadline (the “Deadline”) due to a combination of internal and external delays associated with the preparation and audit process due to a number of factors, including the recent downsizing of the Company in California where it maintains its corporate accounting, the departure of the Company’s auditor, the onboarding and integration of the new Company’s auditor into its corporate systems, the[capacityandlimitedavailabilityoftheCompany’sauditorandunanticipatedcomplexitieswiththecompletionoftheAnnualFinancialFilings[capacitéetladisponibilitélimitéedel’auditeurdelasociétéetlescomplexitésimprévuesavecl’achèvementdesdépôtsfinanciersannuels[capacityandlimitedavailabilityoftheCompany’sauditorandunanticipatedcomplexitieswiththecompletionoftheAnnualFinancialFilings

The Company has been advised by the Ontario Securities Commission (the “OSC”) that it does not qualify for a management cease trade order under National Policy 12-302 – Cease Trade Orders for Continuing Disclosure Failures and, therefore, the OSC will issue a cease trade order for failure to file pursuant to National Policy 11-207 – Cease Trade Orders and Revocations for Failure to File in Multiple Jurisdictions affecting all securities of the Company after the Deadline.

The company’s management and team members are moving quickly to complete annual financial filings it says will be filed before June 24, 2022. The company engages a third party service and consulting firm to assist with field work and audit evidence for its operations in Colombia and changes to corporate accounting processes, systems consolidation and location.

“The timing of this trading ban does not detract from the company’s momentum and recent results in transitioning operations away from its assets in California to the production and sale of certified pharmaceutical grade THC dried cannabis flowers and derivatives from its “Pideka” indoor cultivation facility in Bogotá, Colombiawhere Pideka is the market leader,” said Mr. Sanz of MadridCEO.

Highlights of recent Company developments include:

I.


appointment of a new CEO;

II.


changes to the Company’s Board of Directors to strengthen the Board;

III.


reducing operations in California, thereby reducing costs;

IV.


continued review of workforce reduction opportunities to meet loan obligations and reduce debt;

V


the completion of a $3 million tranche of a $6 million capital initiative and

VI.


receipt, through its 100% subsidiary Pideka, of the European certification of good manufacturing practices (EU GMP).

The Company will make further announcements regarding the status of the audited financial statements and changes to its accounting practices.

About Ikänik Farms

Ikänik Farms is a multinational operator with a medical grade indoor growing facility and laboratory (Pideka) in Colombia which holds GMP-PHARMA and (GACP) Good Agricultural and Collection Practices certifications, and a retail business in California.

Forward-looking statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities laws and United States securities laws (together, the “forward-looking information”). All information, other than statements of historical fact, included in this press release that addresses activities, events or developments that the Company expects or anticipates will or may occur in the future. are forward-looking information. “, “estimate”, “expect”, “intend”, “may”, “potential”, “believe”, “should”, and similar expressions, are forward-looking information, including, but without limitation: statements regarding the audited financial statements, including the expected delay in filing the audited financial statements and the timeline for completing the Company’s audit and the expected closing of the proposed private placement financing.

Although the Company has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking information, there may be other factors that cause the results , performance or achievements are not as intended, estimated or intended, including, but not limited to: changes in laws, a change in management and the inability to obtain additional funding.

There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates regarding future developments, circumstances or results will materialize. Due to these risks and uncertainties, the results or events predicted in the forward-looking information may differ materially from actual results or events.

Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained in this press release speaks as of the date of this release. The Company disclaims any intention or obligation to update or revise this information, except as required by applicable law, and the Company assumes no responsibility for the disclosure relating to any other company mentioned herein.

Related links
https://ikanikfarms.com

SOURCE Ikanik Farms Inc.

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