Investee Company Update: Yooma Wellness Inc.

RNS Number : 3431K

Seed Innovations Limited

04 May 2022

 

Seed Innovations Ltd / AIM: SEED / Sector: Closed End Investments

04 May 2022

SEED Innovations Limited ("SEED" or the "Company")

Investee Company Update: Yooma Wellness Inc.

SEED Innovations Ltd, the AIM quoted company investing in fast growing and industry leading businesses with a focus on the medical cannabis, health and wellness space, notes the suspension of trading in the shares of its portfolio company,  Yooma Wellness Inc. ('Yooma') as reflected in the Yooma announcement included below.  

Yooma is a global vertically integrated wellness platform that develops and markets a portfolio of CBD and wellness brands.   SEED has a holding of 4,427,609 ordinary shares in Yooma representing approximately 4.4% of Yooma's issued share capital.

The announcement by Yooma is set out below without material changes or adjustments:

Yooma Wellness Announces Delay in Annual Filings and Anticipated Cease Trade Order

Toronto, Ontario, Canada, May 3, 2022 - Yooma Wellness Inc. ("Yooma" or the "Company") (CSE: YOOM, AQSE: YOOM), a Toronto-based vertically-integrated global wellness platform that develops and markets a portfolio of wellness brands, announced today that due to unexpected delays to its audit, it has been unable to file the following periodic disclosure documents (the "Annual Filings") by their filing deadline of May 2, 2022:

·  Annual audited financial statements for the year ended December 31, 2021;

·  Management's discussion and analysis for the year ended December 31, 2021; and

·  CEO and CFO certifications of the annual filings for the year ended December 31, 2021.

As a consequence of the Company's inability to file the Annual Filings by the deadline, the Company anticipates that it will be issued a failure-to-file cease trade order ("CTO") by the Ontario Securities Commission.

The Company's 2021 audit remains ongoing due to the Company's growth and acquisition activity in 2021. Although the audit continues to progress well, it has taken longer than anticipated due in large part to the six significant acquisitions completed by the Company in 2021, which have transitioned the Company into a global wellness platform with substantial operations in five different countries, and the additional time required by the auditor to complete the audit procedures associated with those acquisitions.

Notwithstanding the delay, the Company continues to operate normally without disruption and is working diligently with its auditor and a variety of professional advisors to complete the Annual Filings as expeditiously as possible. The Company confirms that it is not currently subject to any insolvency proceedings and that there is no other material information concerning the affairs of the Company that has not been generally disclosed as of the date of this press release.

The Company anticipates that it will complete the Annual Filings on or before May 24, 2022 and the revocation of any CTO is expected to occur within a few days after the Annual Filings are made.

A copy of any CTO that is issued will be posted on the Ontario Securities Commission website once issued. The Company expects that the CTO will provide that a beneficial security holder of the Company who is not, and was not at the date of the CTO, an insider or control person of the Company, may sell securities of the Company acquired before the date of the CTO if: (a) the sale is made through a "foreign organized regulated market", as defined in section 1.1 of the Universal Market Integrity Rules of the Investment Industry Regulatory Organization of Canada; and (b) the sale is made through an investment dealer registered in a jurisdiction of Canada in accordance with applicable securities legislation. Holders of the Company's securities are urged to consult with their own investment advisors or legal counsel about the implications of any CTO.

There can be no assurance that the Company will be able to remedy its filing default and have any CTO lifted in a timely manner or at all.

About Yooma Wellness Inc.

Yooma's mission is to build a vertically-integrated global leader in the manufacturing, marketing, distribution, and sale of wellness products including hemp seed oil and hemp-derived and cannabinoid (CBD) ingredients. The company leverages strategically curated sales channels and ecommerce networks to deliver a diverse mix of wellness products through operating subsidiaries in the United States, United Kingdom, France and Japan. Learn more at www.yooma.ca .

Issuer Contact: Jordan Greenberg, CEO

Email: [e-mail]

Phone: [phone]  

***ENDS***

For further information on the Company please visit www.seedinnovations.co or contact:

Ed McDermott Lance de Jersey	SEED Innovations Ltd	E: [e-mail]
James Biddle Roland Cornish	Beaumont   Cornish   Limited, Nomad	T: (0)20 7628 3396
Isabella Pierre Damon Heath	Shard Capital Partners LLP Broker	T: (0)20 7186 9927
Catherine Leftley Isabelle Morris	St Brides Partners Ltd, Financial PR	E: [e-mail]

Notes

SEED Innovations is an AIM quoted investment company focused primarily on disruptive high growth life sciences and technology businesses particularly within the medical cannabis arena. The Company's strategy is to identify early-stage opportunities that have an upcoming investment catalyst and grow its portfolio in terms of value whilst limiting the number of investee companies to a level where relevant time can be devoted to each.

 

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