Western Resources Corp.: Bi-Weekly Update on Management Cease Trade Order
On January 2, 2025, Western Resources Corp. (TSX: WRX) (“Western Resources” or the “Company”) announced that its principal regulator, the British Columbia Securities Commission (BCSC), had issued a Management Cease Trade Order (MCTO) under National Policy 12-203 – Management Cease Trade Orders. This order prohibits the Company from making any filings or disclosing material information without the prior approval of the BCSC.
Background of the Management Cease Trade Order
The MCTO was issued due to the Company’s inability to file its annual audited financial statements, management’s discussion and analysis, and certifications required under National Instrument 51-102 – Continuous Disclosure Obligations on a timely basis. The reasons for the delay in filing are due to the complexity of the Company’s financial statements and the need for additional time to complete the audit.
Update on the Status of the Management Cease Trade Order
Since the issuance of the MCTO, Western Resources has been working diligently with its auditor to complete the audit and file the required documents. The Company has engaged a new auditor to expedite the process and is making good progress. The new auditor has requested additional information from the Company, which is being provided in a timely manner.
Impact on Western Resources and Its Shareholders
The MCTO has resulted in a trading halt on the Company’s common shares, which will remain in effect until the Company files the required documents and the BCSC lifts the order. This means that existing shareholders cannot sell their shares, and new investors cannot buy the Company’s stock. The MCTO also restricts the Company from making any material announcements without BCSC approval.
Impact on the World
The impact of the MCTO on the world at large is limited. However, it is an important reminder of the importance of timely and accurate financial reporting. Companies are required to disclose material information to their investors in a timely and transparent manner to maintain investor confidence and ensure fair and efficient capital markets.
Conclusion
Western Resources Corp. is making progress in completing the audit required to lift the MCTO and resume normal trading activities. The Company is working closely with its auditor to provide any additional information required to expedite the process. The MCTO serves as a reminder of the importance of timely financial reporting and the potential consequences of failing to meet reporting deadlines.
- Western Resources Corp. is working to lift the Management Cease Trade Order (MCTO) issued by the British Columbia Securities Commission.
- The MCTO was issued due to the Company’s inability to file its annual audited financial statements and other required documents.
- The MCTO has resulted in a trading halt on the Company’s common shares and restrictions on making material announcements.
- The Company is making progress in completing the audit and engaging a new auditor to expedite the process.
- The MCTO serves as a reminder of the importance of timely financial reporting and the potential consequences of failing to meet reporting deadlines.
