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Troubled real-estate imaging company Urbanimmersive Inc. received a general Cease Trade Order (‘CTO’) issued by the Canadian Securities Administrators (Autorité des Marchés Financiers (‘AMF’) being the principal regulator) per National Policy 12-203 – Management Cease Trade Orders (NP 12-203) and the Canadian Investment Regulatory Organization (‘CIRO’) has halted the company’ stock.
The CTO was issued due to the missed filing deadline of Jan. 28, 2024, to file its annual audited financial statements, accompanying management’s discussion and analysis and related Chief Executive Officer and Chief Financial Officer certificates for its fiscal year ended Sept.30, 2023, as required under applicable Canadian securities laws. The delay in filing was caused by the company’s former auditors not renewing their mandate and the ongoing process of finding a new auditor in a short time frame in the busy season at a reasonable cost.
The company will continue to operate in the normal course of business, fulfilling its commercial contracts and obligations, and intends to immediately apply for a revocation of CTO as soon as its annual filings are duly filed.
In the last year, while completing the integration process of its recent acquisitions, Urbanimmersive has streamlined its operations which includes a reduction of its workforce representing annual savings of nearly $2.0 million. Even with a decline in its revenues impacted by the challenging real estate market conditions in 2023, the company believes it should be able to generate positive free cash flows over the next 12 months, the company said in a statement. As a result of its low liquidities ending the low season and less secured fundings than planned in the last year, however, Urbanimmersive said it has continued to work actively on securing a small equity financing in the recent weeks that would be used for working capital purposes and its growth initiatives and will continue to pursue those initiatives. As there is no guarantee of the outcome so far, the company has decided to explore other alternatives to generate liquidities in the short term which may include divestiture of certain assets.