February 6, 2024, Record Resources Inc. (TSXV: REC) has clarified its application to the Alberta Securities Commission, as principal regulator, and its additional regulators, to approve a temporary management cease trade order (“MCTO”) under National Policy 12-203 – Management Cease Trade Orders (“NP 12-203”). If granted, the MCTO will prohibit the trading in securities of the Company by its Chief Executive Officer, Chief Financial Officer, so long as the required filings remain outstanding. The issuance of an MCTO will generally not affect the ability of persons who are not or have not been management of the Company to trade in its securities.
The required filings include the audited financial statements for the year-ended September 30, 2023, the related management’s discussion and analysis and related CEO and CFO certificates, which were due to be filed by January 29, 2024. The completion of the audit is delayed by the ongoing staffing shortages at the audit firm as a result of the pandemic. The Company has been assured by its auditor that these staffing issues have been remedied. Notwithstanding these remedies, the Company requires additional time to complete and submit the required filings.
The Company anticipates that, subject to current conditions remaining unchanged, to file the required filings by February 15, 2024. The Company confirms that it will satisfy the provisions of the alternative information guidelines set out under Sections 9 and 10 of NP 12-203 for so long as it remains in default of the above-noted filing requirements. The Company further confirms that there is no other material information relating to its affairs that has not been generally disclosed. Other than as disclosed herein, the Company is up to date in its filing obligations.
The Company is not currently subject to any insolvency proceedings. If the Company provides any information to any of its creditors during the period in which it is in default of filing the Interim Filings, the Company confirms that it will also file material change reports on SEDAR containing such information.
The Company’s additional regulators to whom the MCTO application was made are: The British Columbia Securities Commission, and the Ontario Securities Commission.
In other news, the company reports closing the first tranche of its private placement of shares (announced in December 19, 2023 news release). The company has issued 957,122 common shares at a price of $0.035 per share, and 957,122 common share warrants exercisable at $0.06 per share for two years. The first tranche of this private placement raised $33,500 in proceeds. The proceeds from the financing are for exploration and working capital. No commission was paid in connection with the financing.
The company reports that, following this financing, it will have 35,414,520 shares outstanding. This financing is subject to TSX Venture Exchange, regulatory and board approvals.