TORONTO, ONTARIO / February 25, 2014 / NTG Clarity Networks Inc. (TSX VENTURE:NCI) is providing this bi-weekly Default Status Report in accordance with National Policy 12-203 - Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-203"). On February 4, 2014, the Company announced that, following a review by staff of the Ontario Securities Commission (the "OSC") in connection with the filing of the Company's annual consolidated financial statements, notes and related Management's Discussion and Analysis for the year ended December 31, 2012 (the "Financial Statements") and the interim consolidated financial statements, notes and related Management's Discussion and Analysis (the "Financial Statements") for the period ending June 30, 2013, the OSC determined that Company was in default of its continuous disclosure requirements under the Securities Act (Ontario) (the "Default").
As a result of this default, on February 14, 2014, the OSC, issued a management cease trade order (the "MCTO"), which imposed restrictions on all trading in securities of the Company by the Chief Executive Officer and the Chief Financial Officer until the Company re-files the above Financial Statements and the OSC makes an order revoking the MCTO. All other parties are permitted to freely trade the Company's securities.
The Company will be making the necessary updates and anticipates that revised Financial Statements will be re-filed by March 28, 2014 in order to remedy the Default.
These changes have no effect on figures previously reported in the 2012 financial statements (the Audited Consolidated Statement of Financial Position, the Audited Consolidated Statements of Changes in Shareholders' Equity, the Audited Statement of Comprehensive Income, or the Audited Consolidated Statement of Cash Flows) or on figures previously reported in the Interim Q2 2013 (the Condensed Consolidated Interim Statement of Financial Position, the Condensed Consolidated Interim Statement of Comprehensive Income, or the Condensed Consolidated Interim Statement of Changes in Shareholders' Equity). For Q2 2013 Cash Flow; Net Cash From Operations changes to $202,578 from $85,911 (3 months and $615,558 from $474,892 (for 6 months); Cash From Financing changes to $12,667 from $129,334 (3 months and ($71,031) from ($69,634) (for 6 months); Cash From Investing changes to ($453,227) from ($69,634) (for 6 months).
The Company confirms that since the issuance of the MCTO, there has not been any material change concerning the affairs of the Company that has not been disclosed as of the date of this news release.
Release ID: 34300