PlantX will restate previously published financial statements
VANCOUVER, BC, June 30, 2022 /CNW/ – PlantX Life Inc. (CST: VEGA) (Frankfurt: WNT1) (OTCQB: PLTXF) (“PlantX“or the”Company“) today announced that, following the review of the revenue recognition policy applied in fiscal year 2021, the Company will restate its previously issued audited comparative consolidated financial statements for the year ended March 31, 2021. This decision was approved by the Company’s Board of Directors on the recommendation of the Company’s Audit Committee and after consultation with management and the Company’s former and current auditors.
The decision to restate these financial statements was based on the Company’s conclusion that certain revenues and costs of sales recognized in fiscal 2021 that were related to the Company’s wholesale business should not have been recognized on a gross basis during this period. The Company subsequently ceased transactions related to its wholesale division effective Q1 2022. These restatements are not expected to impact the historical cash or cash equivalents that were generated during the stated period. above based on current review. Currently, the restatements are expected to impact revenue and cost of sales. Although the Company’s analysis is still ongoing, the Company currently estimates that the revenue impact for the full year 2021 will be a reduction of approximately $2.76 million (3.45 million Canadian dollars) and the cost of sales will decrease by approximately $2.48 million (C$3.10 million).
At this time, the Company has not fully completed its review and the expected financial impact of the restatement is preliminary and subject to change. There can be no assurance that the final adjustments reported will not differ materially from the estimated amounts referred to in this press release, or that additional adjustments will not be identified. This press release qualifies the financial statements, press releases, earnings releases and investor communications previously issued by the Company for the fiscal period referenced above.
PlantX cannot currently estimate when the reprocessing will be complete. The Company will continue to diligently pursue the completion of the restatement and intends to file its next annual filings for 2022 as soon as reasonably possible.
About PlantX Life Inc.
As the digital face of the plant community, the PlantX platform is the one-stop-shop for everything plant-related. With its fast-growing vertical categories, the company offers its customers across North America over 5,000 plant-based products. As well as offering meal and houseplant deliveries, the company currently plans to expand its product lines to include cosmetics, clothing and its own brand of water – but the company is not limiting itself. to an e-commerce platform. The company uses its digital platform to create a community of like-minded consumers and, most importantly, to provide education. His successful business is built and strengthened on partnerships with the best nutritionists, chefs and brands. The company is eliminating barriers to entry for anyone interested in living a plant-based lifestyle and thriving in a longer, healthier and happier life.
The company’s website is http://investor.PlantX.com/.
This press release contains “forward-looking information” within the meaning of applicable securities laws. Any statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information may be identified by words or phrases such as “may”, “will”, “expect”, “likely”, “should”, “would”, “plan”, ” anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative form of these terms, or other similar words, phrases and grammatical variations, or statements that certain events or conditions “can” or “will” happen, or through discussions of strategy. Forward-looking information contained herein includes, but is not limited to, the restatement of the Company’s 2021 financial results and the filing of the Company’s 2022 annual financial statements.
By its nature, forward-looking information is subject to inherent risks and uncertainties which may be general or specific and which give rise to the possibility that the expectations, forecasts, predictions, projections or conclusions will not prove to be accurate; that the assumptions may not be correct; and that the objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information contained in this press release, including, without limitation: risks that additional information may arise from and internal review by its audit committee, the risk that the process of preparing and auditing restated financial statements or other subsequent events may require the Company to make additional adjustments , the time and effort required to complete the restatement of its financial statements, as well as other risks described in greater detail in the Company’s filings which have been filed on SEDAR.
Readers are cautioned to carefully consider these factors, as well as other factors, uncertainties and potential events, and not to place undue reliance on any forward-looking information. The forward-looking information contained herein is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management as of the date such forward-looking information is made. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise, or to explain any material differences between subsequent actual events and such forward-looking information, except as required by applicable law.
SOURCE PlantX Life Inc.
For further information: Lorne Rapkin, President and CEO, [email protected]