TORONTO, ON / ACCESSWIRE / November 17, 2020 / StageZero Life Sciences Ltd. (TSX:SZLS) ("StageZero", or the "Company") announces that it is restating its financial statements for the three and six months ended June 30, 2020 (the "Amended Financial Statements"), along with a corresponding restated management discussion and analysis (the "Amended MD&A"), and will be delayed in filing its interim financial statements for the three and nine months ended September 30, 2020 pending an accounting review (the "Q3 Financial Statements"), along with the corresponding management discussion and analysis (the "Q3 MD&A").
The restatement of the Amended Financial Statements and the Amended MD&A was made as the result of management and the auditor's review of the financial statements during the course of the Ontario Securities Commission's review of the Company's short-form prospectus (the "Prospectus") filed in connection with its previously announced offering of units.
In connection with the Prospectus, the Company engaged its auditors to perform a review of the previously filed unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2020 (the "Previously Filed Financial Statements"). During the auditor's review, the Company identified certain amendments to the Previously Filed Financial Statements including:
June 30, 2020
- an adjustment to the fair value of certain convertible debentures and warrant liabilities as at June 30, 2020.
- adjustments to the number of units, shares and warrants and the pricing thereof resulting from the Company's 8:1 share consolidation.
June 30, 2019
- a revision to the valuation of the warrant liability associated with the June 8, 2018 convertible securities funding agreement (CSFA) with Lind Asset Management XI, LLC and corresponding adjustments to share capital and interest expense.
- adjustments to right-of-use asset, rent receivable, amortization and interest charges.