Body and Mind Inc. Provides Update on Financial Reporting: Delays and Next Steps

Body and Mind Inc. (CSE: BAMM, OTC Pink: BMMJ), a multi-state cannabis operator, has provided an update on its delayed annual financial statements for the year ended July 31, 2024. The company has faced challenges in completing the audit process, leading to a delay in filing the 2024 Annual Financial Filings, including management discussion and analysis, and CEO and CFO certifications. The company has applied for and received a management cease trade order (MCTO) from Canadian securities regulatory authorities, preventing the CEO and CFO from trading securities of the company until the filings are completed.

The delay in filing the annual financial statements is primarily due to incomplete audit procedures, including final approval of an external accounting memorandum for the auditor, application of additional audit procedures to assess independent conclusions, and final internal quality control sign-off from the auditor. The company is actively working with its auditors to complete these procedures and expects to file the 2024 Annual Financial Filings on or around December 9, 2024.

To mitigate the effects of the MCTO and ensure compliance with regulatory requirements moving forward, the company is taking several steps. First, it is engaging an external accounting consultant to add to its resources and help achieve future filing deadlines. This step demonstrates the company's commitment to improving its internal processes and ensuring timely and accurate financial reporting.

The delay in filing the annual financial statements has had an impact on the company's operations and financial performance. The MCTO has limited the company's ability to make strategic decisions and raise capital through the sale of shares, which could potentially lead to dilution. The delay in filing the financial statements has also affected the company's financial performance, as the company has not been able to meet the required filing deadline and the audit process is not yet complete. This delay may result in a lack of transparency and investor confidence, which could negatively impact the company's stock price and overall financial performance.

In conclusion, Body and Mind Inc. has provided an update on the delay in filing its annual financial statements and the steps it is taking to mitigate the effects of the MCTO. The company is actively working with its auditors to complete the audit process and expects to file the 2024 Annual Financial Filings on or around December 9, 2024. To ensure compliance with regulatory requirements moving forward, the company is engaging an external accounting consultant to improve its internal processes and achieve future filing deadlines. Investors should monitor the company's progress and assess the potential impact of the delay on its operations and financial performance.