{"id":405353,"date":"2020-12-23T16:37:20","date_gmt":"2020-12-23T21:37:20","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=405353"},"modified":"2020-12-23T16:37:20","modified_gmt":"2020-12-23T21:37:20","slug":"3-sixty-letter-to-stakeholders","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/3-sixty-letter-to-stakeholders\/","title":{"rendered":"3 Sixty \u2013 Letter to Stakeholders"},"content":{"rendered":"
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ALMONTE, Ontario, Dec. 23, 2020 (GLOBE NEWSWIRE) — 3 Sixty Risk Solutions Ltd. (\u201c3 Sixty\u201d or the \u201cCompany\u201d) (CSE: SAFE) (OTCQB: SAYFF) (FSE: 62P2) is pleased to provide an update regarding its business and operations to company stakeholders.<\/p>\n

Dear Stakeholders of 3 Sixty Risk Solutions Ltd.:<\/p>\n

Please let me introduce myself: my name is David Beck. I am the Chairman of the Board of Directors (BOD) at 3 Sixty Risk Solutions Ltd. (\u20183 Sixty\u2019). I am writing this letter to all company stakeholders as an extension of, and further to a press release dated November 23, 2020 entitled \u2018Business Update\u2019. In April 2020, I joined the 3 Sixty BOD and was subsequently appointed to Chairman in September. While my priority and statutory duty is to work to the benefit of all stakeholders of 3 Sixty, with 16.2 million shares, I am also the second largest shareholder of 3 Sixty.<\/p>\n

In October, I was joined on the BOD by Andrew Ellis and Rita Simkin. Andrew and Rita have since taken active roles in the company as interim CEO and interim COO, respectively. Andrew and Rita join existing BOD members, myself, Christian Grunt and Nitin Kaushal. Further, 3 Sixty founder, Thomas Gerstenecker, resigned as CEO and Director.<\/p>\n

Before I elaborate on details, it is important to state two things. First, all current BOD members are not receiving any cash or equity compensation. We are accruing modest cash and stock compensation, which will be honoured only when we are confident of the company\u2019s financial position, including satisfaction of critical payables. Second, the company\u2019s management and employees continue to deliver on customer commitments, build a pipeline of new business opportunities and produce revenue.<\/p>\n

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\n Our Priority \u2013 Enabling trading on the CSE <\/u>
\n <\/strong>\n <\/p>\n

The BOD is focused on ensuring the Company files all outstanding financial statements, MD&A and other continuous disclosure documents in order to apply for a revocation of the current cease trade order (CTO) imposed against 3 Sixty\u2019 securities by the Ontario Securities Commission on July 15, 2020. It is important to understand that the CTO impacts more than our equity shareholders. It impacts our ability to recruit and retain key employees, pay and work with dedicated suppliers, and service and build customer relationships and we are working diligently to rectify the situation.<\/p>\n

In order to have the CTO revoked so that the company\u2019s shares can again trade on the Canadian Securities Exchange, 3 Sixty is required to not only file its audited 2019 financial statements (including refiling Q1, Q2, and Q3 of 2019) and related documents, but also interim unaudited financial statements for Q1, Q2, and Q3 of 2020. While the company has largely completed financial statements for 2020, full completion of these statements cannot occur until ending accounting balances for 2019 are known and audited. Understandably, the completion of our 2019 audit is critical.<\/p>\n

To provide context, 3 Sixty became a public company in January 2019. As such, 2019 marks the company\u2019s first year to be audited as a public company. It is also the first year the company has engaged with our auditor MNP LLP. MNP has been a patient partner in working through this audit process. However, please understand, MNP can only audit information that 3 Sixty provides. Unfortunately, during its rapid growth, and in particular, growth through acquisition in 2018 and 2019, 3 Sixty management did not effectively integrate the disparate entities. This has caused enormous effort to correct.<\/p>\n

These efforts have largely paid off with the exception of one situation. We are unable to locate records related to one of the company\u2019s subsidiaries, David Hyde and Associates which are required in order to complete the financial statements audit. While on the surface this may seem worrisome, on a materiality basis, David Hyde and Associates represented roughly $2 million of the approximately $30 million of gross revenue for 2019. MNP is acutely aware of this situation, and continues to work daily with 3 Sixty in the upmost professional manner.<\/p>\n

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\n Our Future – Building a World Class Security Services Company<\/u>
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As management and BOD are completing our 2019 audit, we are working diligently in parallel with the task of defining our go-forward business strategy. Fortunately, our experience and strength of the company\u2019s platform should enable the company to demonstrate immediate results. Looking at each of our business units, I provide this brief summary:<\/p>\n