CALGARY, Alberta and TORONTO, June 27, 2022 (GLOBE NEWSWIRE) -- Magnetic North Acquisition Corp. (TSXV: MNC; MNC.PR.A) (“Magnetic North” or the “Company”) is pleased to announce that fiscal year results for the period ended December 31, 2021 and first quarter fiscal results for the period ended March 31, 2022 have been filed on SEDAR.
As a result of a review conducted by the Company’s new auditor and management’s consideration of the application of IFRS 10 (Consolidation Financial Statements) for the Company’s investment companies, the Company restated its December 31, 2020 comparative financials in its December 31, 2021 audited financial statements. The Company reviewed for qualification as an investment entity and determined that it met this criteria and considers itself an investment entity for both years ended December 30, 2020 and 2021. Accordingly, the Company shall measure its investment in investee (in this case CXTL Recycling (Canada) Corp. (“CXTL”)) at fair value through profit or loss in accordance with IFRS 9. The effect of this adjustment on the financial statements of the Company for the fifteen months ended December 21, 2020 is that they have been restated to present only the stand alone financial statements of the Company and the effect of consolidation of CXTL into the Company has been eliminated. The Company will now include its investment in CXTL as an investment at fair value through profit or loss in its statement of financial position as at December 31, 2020. This has resulted in recognition of fair value loss of $3,861,856 in the profit or loss for the fifteen months ended December 31, 2020. There will be no effect of this change on the financial statements prior to 2020. Please refer to the Company’s December 31, 2021 audited financial statements for a description of the impact of the restatement on each of the financial statements presented therein.
On April 26, 2022, the Company announced that it would miss the filing deadline of May 2, 2022 to file its annual audited financial statements for the financial year ended December 31, 2021, the accompanying management's discussion and analysis and the related CEO and CFO certifications (collectively, the "Annual Filings"). A management cease trade order (“MCTO”) was issued by the Alberta Securities Commission (the “ASC”), effective as of May 4, 2022, in connection with the filing delay. The Company is providing this status update in accordance with National Policy 12-203 – Management Cease Trade Orders. The Company confirms as of the date of this news release that there is no other material information concerning the affairs of the Company that has not been generally disclosed. Upon the filing of the Annual Filings, the Company believes that it has satisfied the conditions of the ASC in order to have the MCTO revoked.
The Company’s financials along with the related management discussion and analysis’ may be found on SEDAR and on the Company’s website at www.magneticnac.com.
About Magnetic North Acquisition Corp.
Magnetic North invests and manages businesses on behalf of its shareholders and believes that capital alone does not always lead to success. With offices in Calgary and Toronto, our experienced management team applies its considerable management, operations and capital markets expertise to ensure its investee companies are as successful as possible for shareholders. Magnetic North common shares and preferred shares trade on the TSX Venture Exchange under the stock symbol MNC and MNC.PR.A, respectively. The TSX Venture recently announced that Magnetic North is a “2021 TSX Venture 50” recipient. For more information about Magnetic North, visit its website at www.magneticnac.com. Magnetic North’s securities filings can also be accessed at www.sedar.com.
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CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
Certain statements in this news release are “forward-looking statements”, which reflect current expectations of the management of Magnetic North regarding future events or Magnetic North's future performance. All statements other than statements of historical fact contained in this news release may be forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking statements. Magnetic North believes that the expectations reflected in such forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements are made as of the date of this news release and Magnetic North assumes no obligation to update or revise them to reflect new events or circumstances, except as expressly required by applicable securities law. Further information regarding risks and uncertainties relating to Magnetic North and its securities can be found in the disclosure documents filed by Magnetic North with the securities regulatory authorities, available at www.sedar.com.