GLG Life Tech Corporation Announces Delay in Filing Its Annual Financial Statements Tied to Progress in Debt Restructuring - Seite 2

Given the Chinese court's delay in providing these 2023 orders to the Company and their receipt coming late in the audit process, the Company is working with its auditor a) to determine the precise impact of the Court Orders on the Company's financials, including the Company's 2023 interim financial statements, which, along with 2022 financial statements related to Runyang asset characterization, are expected to require restatement tied to these court orders and proceedings, and b) to coordinate a plan and timeframe in which to revise the Company's 2023 annual financial statements and complete the audit thereof. That the Court Orders were dated at different dates within 2023, but were not provided to the Company until late March 2024, is unusual from a western perspective but appears to be proving not as uncommon in China for proceedings implicating western companies given the current geopolitical climate.

The Company affirms that it has the necessary resources - both financial and personnel - to remedy its default in meeting the filing requirement. At present, the Company expects to file its Required Documents no later than May 31, 2024. Additionally, Management inquired of the British Columbia Securities Commission regarding the possibility of filing for a Management Cease Trade Order ("MCTO"), pursuant to National Policy 12-203, but was informed that it was not possible this close to the filing deadline. While, accordingly, the Company will not be granted an MCTO, and that a Cease Trade Order is anticipated to issue in respect of the Company's default, the Company nevertheless affirms that management and other insiders are subject to a trading black-out policy of the Company that reflects the principles in section 9 of National Policy 11-207.

The Company further affirms that it intends to satisfy the provisions of the alternative information guidelines set out in National Policy 12-203 so long as it remains in default of its obligation to file the Required Documents. The Company affirms that there are no insolvency proceedings against it as of the date of this news release. The Company also affirms that there have been no material business developments that have not been generally disclosed since the date of the Company's most recent filing of its interim financial reports.