{"id":456559,"date":"2021-03-11T20:46:16","date_gmt":"2021-03-12T01:46:16","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=456559"},"modified":"2021-03-11T20:46:16","modified_gmt":"2021-03-12T01:46:16","slug":"c-o-r-r-e-c-t-i-o-n-from-source-champignon-brands-inc","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/c-o-r-r-e-c-t-i-o-n-from-source-champignon-brands-inc\/","title":{"rendered":"\/C O R R E C T I O N from Source — Champignon Brands Inc.\/"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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In the news release, Champignon Brands Restates Financial Statements and MD&A Files Listing Statement, issued 11-Mar-2021<\/span> by Champignon Brands Inc. over Cision, we are advised by the company that the headline and subheadline have been changed. The complete, corrected release follows:<\/p>\n

Champignon Brands Restates Financial Statements and MD&A<\/h3>\n

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Listing statement to be filed<\/p>\n

\n VANCOUVER, BC<\/span>, March 11, 2021<\/span> \/PRNewswire\/ – Champignon Brands Inc. (the “Company”), (CSE: SHRM) (FWB: 496) (OTCQB: SHRMF), announced that as a result of a review by the British Columbia Securities Commission (the “Commission”), the Company has refiled its condensed interim consolidated financial statements and management’s discussion & analysis (“MD&A”) for the three and six month periods ended March 31, 2020<\/span> (the “Restated Financial Statements and MD&A”). <\/p>\n

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\n \"Champignon
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\n Restated Financial Statements<\/b>\n <\/p>\n

For the three and six month periods ended March 31, 2020<\/span>, the Company previously recognized intangible assets in connection with the acquisitions of Artisan Growers Ltd., Novo Formulations Ltd. and Tassili Life Sciences Corp. (the “Acquisitions”). Subsequent to the issuance of the Company’s condensed interim consolidated financial statements for the period ended March 31, 2020<\/span> and for the period from incorporation on March 26, 2019<\/span> to March 31, 2019<\/span>, management determined that the financial statements needed to be restated to correct for the accounting for the Acquisitions. The Company determined that the intangible assets did not meet the definition of intangible assets for the purposes of international financial reporting standards and as result will be recorded as transaction costs in the Company’s statement of loss and comprehensive loss. The effect of the restatement did not affect the Company’s cash position.<\/p>\n

As a result, the net loss and comprehensive loss for the restated three month period ended March 31, 2020<\/span> increased from $2,774,986<\/span> to $16,329,497<\/span> and for the six month period ended increased from $2,916,302<\/span> to $16,470,813<\/span>, in each case increasing by $13,554,511<\/span>. Consideration paid in excess of identifiable assets on the Acquisitions was restated to $13,517,014<\/span> from $nil for the three and six month periods ended March 31, 2020<\/span>. The balance of Intangible Assets as at March 31, 2020<\/span> was restated to $111,929<\/span> from $11,860,462<\/span>. Share Capital as at March 31, 2020<\/span> was restated to $17,373,727<\/span> from $15,603,227<\/span>.<\/p>\n

In addition, it was determined that a shareholder and contracted consultant (the “Consultant”) of the Company was a related party with respect to the Acquisitions. As a result, the Company has disclosed the proceeds paid to the Consultant and the stock options issued to the Consultant as related party transactions in the Restated Financial Statements and MD&A. The Consultant was also a shareholder of each of the entities which were the subject of the Acquisitions and received shares of the Company as part of the consideration issued by the Company in respect of the Acquisitions. There are no ongoing contractual or other commitments with the Consultant resulting from the Acquisitions. On November 17, 2020<\/span> the Company terminated the consulting agreement with the Consultant. For details, see the Related Party Transactions section of the Restated March 31, 2020<\/span> MD&A filed under the Company’s profile on the SEDAR website at www.sedar.com<\/a> or on the Company’s website at www.champignonbrands.com<\/a>.<\/p>\n

Complete details on the effect of the restatements are included in the notes to the Restated Financial Statements and in the MD&A.<\/p>\n

The Restated Financial Statements and MD&A supersede the previously filed financial statements and MD&A. Such previously filed financial statements and MD&A should be disregarded. The Restated Financial Statements and MD&A are available for review under the Company’s profile on the SEDAR website at www.sedar.com<\/a> or on the Company’s website at www.champignonbrands.com<\/a>.<\/p>\n

\n Interim Financial Statements<\/b>\n <\/p>\n

The Company concurrently filed the condensed interim consolidated financial statements and related MD&A’s for the three months ended June 30, 2020<\/span> and for the six months ended September 30, 2020<\/span> (the “Interim Financial Statements and MD&A”). The Interim Financial Statements and MD&A reflect the acquisition of AltMed Capital Corp. (“AltMed”) on April 30, 2020<\/span> (the “Transaction”). The Transaction constituted a Reverse Takeover Transaction (“RTO”) of Champignon by AltMed. As a result, the fiscal year end of the Company for accounting and reporting purposes subsequent to April 30, 2020<\/span> will be AltMed’s fiscal year end of March 31<\/span>.<\/p>\n

\n CSE Listing Status\/Cease Trade Orders<\/b>\n <\/p>\n

The Company intends to complete a new Listing Statement with the Canadian Securities Exchange (“CSE”) to reflect the acquisition of AltMed and the RTO. In addition to the lifting of the existing cease trade orders issued by the Commission, the filing of the new Listing Statement will be required by the CSE prior to the Company’s Common Shares being reinstated for trading on the CSE. The existing cease trade orders, issued on August 26, 2020<\/span> and October 27, 2020<\/span>, effectively provide that the Company must file:<\/p>\n