DMG Blockchain Solutions Announces Update on Annual Filings and Management Cease Trade Order Application

VANCOUVER, British Columbia, Jan. 28, 2022 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) (“DMG” or the “Company”), a vertically integrated blockchain and cryptocurrency technology company, announces that it has been advised today by the British Columbia Securities Commission (“BCSC”), the Company’s principal securities regulator in Canada, that they have accepted the Company’s application for a management cease trade order (“MCTO”) be granted in respect of the late filing of its audited annual financial statements for the year ended September 30, 2021 and related management’s discussion and analysis (collectively, the “2021 Annual Financial Statements”), and the CEO and CFO certifications to be delivered in respect of the 2021 Annual Financial Statements (the “Certifications”). The MCTO order will be issued by the BCSC on January 31, 2022.

As disclosed in the Company’s press release dated January 26, 2022, the Company was advised by its external auditors (the “Auditors”) that they will require additional time to complete its internal review and audit procedures for the Company’s financial year ended September 30, 2021. Consequently, the Company is not able to file its 2021 Annual Financial Statements and related Certifications by the filing deadline of January 28, 2022 as required under applicable Canadian securities laws. As a result of the MCTO being granted, the Company has until March 31, 2022, being the expiry date of the MCTO, to file the 2021 Annual Financial Statements and related Certifications.

Pursuant to the MCTO, the Chief Executive Officer and the Chief Financial Officer of the Company will not be permitted to trade any securities of the Company unless and until such time as the Company files the 2021 Annual Financial Statements. While the MCTO is in effect, the Company expects that shareholders of the Company will continue to be able to trade the Company’s common shares on the TSX Venture Exchange in the normal course. Until the 2021 Annual Financial Statements are filed, the Company will be required to comply with the provisions of the alternative information guidelines specified in National Policy 12-203 of the Canadian Securities Administrators by issuing bi-weekly default status reports in the form of press releases for so long as the MCTO remains in effect.