VAUGHAN, ON, March 31 /CNW/ - Genesis Worldwide Inc. (TSX: GWI) ("Genesis" or the "Company") wishes to advise that there will be a delay in the filing of its audited financial statements for the year ended December 31, 2009 and its related Management's Discussion and Analysis, Chief Executive Officer and Chief Financial Officer certifications, and its Annual Information Form for the year ended December 31, 2009 (collectively, the "Required Disclosure"), which was due to be filed on or before today's date (the "Filing Deadline") pursuant to applicable securities laws. As part of its cost cutting measures, the Company commenced a process of renegotiating its annual audit fees with its auditor, Ernst & Young LLP ("E&Y") in early March. Simultaneously, the Company contemplated and evaluated engaging a new auditor in its effort to reduce audit costs if an acceptable arrangement could not be reached with E&Y. As a result of this process, the commencement of the audit of the Company's financial statements for the year ended December 31, 2009 was delayed. An arrangement acceptable to the Company was reached with E&Y on March 16, 2010, and the audit of the Company's financial statements for the year ended December 31, 2009 commenced immediately thereafter. However, because of the delay in the commencement of the audit, the Company has not completed the audit in time to file the Required Disclosure by the Filing Deadline.
The Company has applied for a Management Cease Trade Order under National Policy 12-203 (the "Policy") pending the filing of the Required Disclosure via SEDAR. The Company is confident that the Financial Disclosure will be filed by no later than April 30, 2010. The Management Cease Trade Order is expected to be imposed against some or all of the persons who are directors, officers or insiders of the Company instead of a cease trade order being imposed against all securities of the Company. Such an order would not generally affect the ability of persons who are not directors, officers or insiders of the Company to trade the securities of the Company pending the filing of the Required Disclosure via SEDAR.
The Company intends to comply with the provisions of the Alternative Information Guidelines as set out in the Policy for as long as it remains in default, including the issuance of bi-weekly default status reports, each of which will be issued in the form of a press release.
The Company is not subject to any insolvency proceeding and there is no other material information concerning the affairs of the Company that has not been generally disclosed.
About Genesis Worldwide Inc.
Genesis is a provider of green light steel building products, systems and technology targeted at the global commercial, residential and institutional building sectors. Genesis delivers customized turnkey structural solutions including innovative light steel products, software packages, industrial equipment, training programs, professional services and support. Headquartered in the Greater Toronto Area in Ontario, Canada, Genesis has established a network of partners with engineering, manufacturing and distribution operations in Canada, the United States, the Middle East, Eastern Europe and Russia. For additional information about the Company, visit www.genesisworldwide.com.
Caution Regarding Forward-Looking Information
Certain statements in this press release which are not historical facts constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements") and are made pursuant to the "safe harbour" provisions of such laws. Statements related to the Company's projected revenues, earnings, growth rates, performance, business prospects and opportunities are forward-looking statements, as are any statements relating to future events, conditions or circumstances. The use of terms such as "may", "will", "should", "plan", "believes", "predict", "potential", "anticipate", "expect", "project", "target", "estimate", "continue", and similar terms are intended to assist in identification of these forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects, and opportunities. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect.
Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause the actual results, performance or achievements of the Company to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements.
Many factors could cause the actual results of the Company to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements, including, without limitation, those factors discussed under the heading "Risk Factors" in the Company's most recent Annual Information Form ("AIF"), a copy of which is available on SEDAR at www.sedar.com.
Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and the Company does not undertake any obligation to update forward-looking statements, except required by law, should assumptions related to these plans, estimates, projections, beliefs and opinions change.
SOURCE GENESIS WORLDWIDE INC.
For further information: For further information: Genesis Worldwide Inc., Catherine Smyth, Manager, Investor Relations, Tel: (905) 832-9286