TSX Venture: QPT
EDMONTON, Oct. 28, 2016 /CNW/ - Quest PharmaTech Inc. (TSX-V: QPT) ("Quest" or the "Company"), a pharmaceutical company developing and commercializing products to improve the quality of life, today announces a change of auditor.
Quest announces the resignation of its auditor, Ernst and Young LLP, at their own initiative, effective October 19, 2016. Ernst and Young LLP was previously terminated as auditor of Quest's subsidiary, OncoQuest Inc. ("OncoQuest"), on September 14, 2016 and was replaced by a U.S. based audit firm. There were two reportable events (as defined in National Instrument 51‐102 Continuous Disclosure Obligations) with Ernst & Young LLP. There was a difference of opinion between management of Quest and Ernst and Young LLP on the classification of preferred shares. Management of Quest were of the opinion that the preferred shares should be classified as equity in Quest's financial statements for the year ended January 31, 2016. Ernst and Young LLP was of the opinion that the preferred shares should be classified as debt. There was also a difference of opinion between management of Quest and Ernst and Young LLP on the classification of cash and short term investments as non-current assets. Management of Quest were of the opinion that cash and short term investments should be classified as current assets in Quest's financial statements for the year ended January 31, 2016. Ernst and Young LLP was of the opinion that cash and short term investments should be classified as non-current assets. Quest's Audit Committee and Board of Directors were informed of and discussed the two disagreements with Ernst and Young LLP and Quest ultimately accepted the classifications recommended by its former auditor.
Subsequent to January 31, 2016, the OncoQuest articles of incorporation were amended so that equity classification for the preferred shares is appropriate going forward. As well, OncoQuest's Board of Directors unanimously approved the removal of cash restrictions on US$6,000,000 of preferred share private placement proceeds so that current classification for cash and short term investments is appropriate going forward.
Quest has interviewed several audit firms and expects to be in a position to appoint a new auditor shortly.
About Quest PharmaTech Inc.
Quest PharmaTech is a publicly traded, Canadian based pharmaceutical company developing products to improve the quality of life. The Company through its subsidiary, OncoQuest is developing antibody based immunotherapeutic products for cancer. In addition, the Company owns the Photodynamic Therapy technology for oncology and dermatology applications, licensed to Bioceltran Co., Ltd., a Korea based company (Bioceltran). Quest has an ownership interest in Bioceltran which is focused on SP Technology™ for transdermal delivery of drugs and photosensitizers for pharmaceutical and cosmetic purposes. Quest also markets consumer health products worldwide, including Bellus Skin™ serum, a premium anti-wrinkle skin care product licensed from Korea. Quest is also developing an antibody licensed from University of Nebraska, Mab AR 9.6 against truncated O-glycan on MUC16, for targeted cancer therapy applications.
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SOURCE Quest PharmaTech Inc.
For further information: Pierre Vermette, Chief Financial Officer, Quest PharmaTech Inc., Tel: (780) 448-1400 Ext. 217, Email: firstname.lastname@example.org, Internet: www.questpharmatech.com