THC Restates Financial Statements to Show Reclassification of $250,000 from Income to Subscription Funds
Jan 20, 2017
OTC Disclosure News Service
– THC Restates Financial Statements to Show Reclassification of $250,000 from Income to Subscription Funds
VANCOUVER, BC–(Marketwired – January 20, 2017) – THC BioMed Intl Ltd. (“THC” or the “Company“) (CSE: THC) (CSE: THC.CN) (CNSX: THC) (OTCQB: THCBF) (FRANKFURT: TFHC) announces that due to a request from Trans-Medica Ltd. (“Trans-Medica”) in September 2016, it agreed to re-categorize, from income to subscription funds, an amount of money that had previously been received by THC from Trans-Medica. As a result, THC will restate its annual financial statements for the year ended July 31, 2016 and the financial quarters ended April and October 2016. While the $250,000 was initially received by THC pursuant to an invoice for services rendered and categorized as income, Trans-Medica contacted THC in the fall of 2016 to say that it had intended the funds to be used as subscription funds for shares at $0.25 each. Since the written agreement between the parties — previously announced in press releases filed on May 14, 2015 and July 15, 2015 — had allowed for that possibility, THC agreed in September 2016 to convert the amount into shares at $0.25. That price was available to the Issuer for the issuance of shares pursuant to CSE policy at the time. As a result, the Issuer will restate its financial statements to reflect that the money received was for subscription funds received in advance and not regular income.
“While this change results in our financial statements showing a greater loss, it is simply the result of the reclassification of the funds and the corresponding issuance of shares. There was no change to the actual amount of money received by THC,” said Hee Jung Chun, CFO of THC, “The reclassification came after the publication of the financial statements for April Q3 and the July year end that are being restated. The subsequent quarter will be restated as well to reflect the change. While we are constantly testing and improving our procedures for internal controls, we are confident that they are effective. These restatements are the result of the discussions with Trans-Medica and our agreement to accept the funds as subscription funds.”
THC is licensed under Canada’s Access to Cannabis for Medical Purposes Regulations (“ACMPR”) for the cultivation, production and sale of cannabis for medical purposes in the form of dried or fresh product, oil and starting materials. THC also conducts research development of the products and services related to cannabis for medical purposes. Authorized purchasers can make product orders through www.thcbiomed.com.
This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business of THC. Forward-looking information is based on certain key expectations and assumptions made by the management of THC. Although THC believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because THC can give no assurance that they will prove to be correct. THC disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
NEITHER THE CSE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
President and CEO:
THC Biomed Intl Ltd.
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