Forte Group Announces Delay in Filing Financial Statements

Rhea-AI Summary

Forte Group Holdings Inc. (FGHFF) has announced a delay in filing its audited financial statements, management's discussion and analysis, and CEO/CFO certifications for fiscal year 2024. The filings, originally due by April 30, 2025, are now expected to be completed by May 5, 2025.

The delay is primarily due to increased audit activity related to the company's discontinued operations, including voluntary dissolutions and wind-down of non-core subsidiaries. These actions are part of Forte Group's strategic initiative to streamline operations and reduce balance sheet liabilities.

As a consequence, the British Columbia Securities Commission may issue a Failure-to-File Cease Trade Order (FFCTO), which would temporarily prohibit trading of Forte Group's securities in Canada until the required filings are completed.

Positive

• Strategic wind-down of non-core subsidiaries expected to reduce balance sheet liabilities
• Company actively working with auditors to complete filings within a short timeframe (by May 5, 2025)

Negative

• Delay in filing required financial statements past regulatory deadline
• Potential trading suspension through Failure-to-File Cease Trade Order (FFCTO)
• Operational restructuring involving discontinued operations and subsidiary dissolutions

VANCOUVER, BRITISH COLUMBIA / ACCESS Newswire / May 1, 2025 / Forte Group Holdings Inc. (CSE:FGH)(OTC:FGHFF)(FSE:7BC0, WKN:A40L1Z)("Forte Group" or the "Company"), a diversified lifestyle and wellness consumer packaged goods company, announces a delay in filing its audited financial statements for the fiscal year ended December 31, 2024, along with the accompanying management's discussion and analysis and CEO and CFO certifications (collectively, the "Required Filings"), which were due by April 30, 2025.

The delay is primarily attributable to increased audit activity related to the Company's discontinued operations, including the voluntary dissolutions and the orderly wind-down of certain non-core subsidiaries, which is anticipated to enable the Company to recognize reduced liabilities on its balance sheet. These measures are part of Forte Group's broader strategic initiative to streamline operations and strengthen its balance sheet. In addition to these items, the audit includes standard year-end procedures that also require completion.

The Company is working closely with its auditor, Davidson & Company LLP, and anticipates that the Required Filings will be completed and filed on or about May 5, 2025.

As a result of the delay, the British Columbia Securities Commission (BCSC), its principal regulator, may issue a Failure-to-File Cease Trade Order (FFCTO) under National Policy 11-207. The FFCTO would prohibit trading in the Company's securities in Canada, including trades on the Canadian Securities Exchange, until the Required Filings are made and the FFCTO is revoked.

Forte Group remains fully committed to resolving all outstanding audit items and will provide further updates as more information becomes available.

About Forte Group Holdings Inc.

Forte Group Holdings Inc. (CSE:FGH)(OTC:FGHFF)(FSE: 7BC0, WKN:A40L1Z) is a diversified lifestyle and wellness consumer packaged goods company. Forte Group develops and manufactures a range of alkaline and mineral-enriched beverages and nutraceutical supplements for both its TRACE brand and private-label clients. Based in British Columbia, Canada, Forte Group owns a pristine natural alkaline spring water aquifer and operates a 40,000-square-foot, Health Canada and HACCP-certified manufacturing facility near Osoyoos, British Columbia. The Company's distribution network includes traditional retail and e-commerce channels, delivering wellness-focused products directly to consumers through its innovative offerings.

On behalf of the Board of Directors:

Marcello Leone, Chief Executive Officer and Director
info@fortegroup.co
604-569-1414

Disclaimer for Forward-Looking Information

This news release contains forward-looking statements within the meaning of applicable securities laws. These forward-looking statements include, but are not limited to, statements regarding the anticipated timing of the filing of the Required Filings, the expected issuance and duration of a Failure-to-File Cease Trade Order, the Company's efforts to resolve audit-related matters, and the anticipated recognition of reduced liabilities resulting from the voluntary dissolution and wind-down of certain non-core subsidiaries. Forward-looking statements reflect management's current expectations, estimates, projections, and assumptions as of the date hereof and are subject to a number of known and unknown risks, uncertainties, and other factors that could cause actual outcomes to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among others: the ability to complete the Required Filings on the anticipated timeline or at all; the receipt of necessary regulatory clearances; delays in audit procedures; the Company's ability to complete its corporate restructuring initiatives as planned; and general risks relating to the Company's business, including those detailed from time to time in its public disclosure documents available on SEDAR+ at www.sedarplus.ca. Readers are cautioned not to place undue reliance on any forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws.

SOURCE: Forte Group Holdings

View the original press release on ACCESS Newswire

FAQ

Why did Forte Group (FGHFF) delay its 2024 financial statements filing?

Forte Group delayed filing due to increased audit activity related to discontinued operations, including voluntary dissolutions and wind-down of non-core subsidiaries, as well as pending standard year-end procedures.

When will Forte Group (FGHFF) file its delayed 2024 financial statements?

Forte Group expects to complete and file the required financial statements on or about May 5, 2025.

What are the consequences of Forte Group's (FGHFF) delayed financial filing?

The British Columbia Securities Commission may issue a Failure-to-File Cease Trade Order (FFCTO), which would prohibit trading of the company's securities in Canada until the required filings are completed.

What strategic changes is Forte Group (FGHFF) implementing in 2025?

Forte Group is implementing strategic initiatives including streamlining operations, winding down non-core subsidiaries, and strengthening its balance sheet through reduced liabilities.