3 Sixty Announces Further Delay to Filing 2019 Fiscal Year End Financial Results and Intention to File Amended and Restated Interim Financial Statements; Cease Trade Order Issued by the Ontario Securities Commission as a Result

ALMONTE, Ontario, July 15, 2020 (GLOBE NEWSWIRE) -- 3 Sixty Risk Solutions Ltd. (“3 Sixty” or the “Company”) (CSE: SAFE) (OTCQB: SAYFF) (FSE: 62P2) announced today that the release of its financial results for the fourth quarter and fiscal year ended December 31, 2019 will be further delayed. Though the Company was nearing completion of the necessary procedures to finalize the audit of the year-end financial statements in order to effect the necessary filings on July 15, 2020 as previously indicated, the Company was made aware of the need to reassess the amounts recorded in the Company’s interim financial statements for intangible assets and goodwill for each of the three month periods ended March 31, 2019, June 30, 2019 and September 30, 2019 (collectively, the “2019 Interim Results”) as it relates to the Company’s acquisition of Total Cannabis Security Solutions (“TCSS”) in January 2019. Following this reassessment, the Company has determined that it is necessary to amend and restate these interim financial statements and related management’s discussion and analysis, which it must do prior to finalizing and filing the financial results for the fourth quarter and fiscal year ended December 31, 2019.

In response to the inability of the Company to file the financial results for the fourth quarter and fiscal year ended December 31, 2019 by July 15, 2020, a cease trade order (the “Cease Trade Order”) was issued by the Ontario Securities Commission (“OSC”) against the Company and its securities. As a result, trading of the Company’s shares on the Canadian Securities Exchange will be halted until the Cease Trade Order is revoked. The Cease Trade order replaces the management cease trade order previously issued by the OSC in response to the Company’s filing default.

HIGHLIGHTS

• Fiscal 2019 total revenue estimated at $29 million, a 427% increase from fiscal 2018 from $5.5 million
• Fiscal 2019 total customers were 601, a 2,900% increase from fiscal 2018 customers from 20
• Fiscal 2019 total employees were 626, a 525% increase from fiscal 2018 employees from 99, establishing a nationwide team
• Actively rebuilding management team and executing on cost saving initiatives resulting in more than $5.5 million annualized tangible cost savings by Q2 2020

Commenting on the Company’s fiscal year ended December 31, 2019, Founder, Chairman, a.i., and CEO, Thomas Gerstenecker, said “2019 was a year of incredible growth for the Company in terms of infrastructure, capacity and revenue, in particular, completing a going-public transaction, and the acquisition of two operating businesses (TCSS and INKAS Security Services Ltd.). In addition, scaling front line personnel and significant revenue growth year-over-year. I am pleased and thankful for the entire operating team’s efforts over the year on delivering ‘top-shelf’ security services to our clients,” said Founder, Chairman, a.i., and CEO, Thomas Gerstenecker.