CINAR Working Diligently on Providing Financial Statements.Business Editors MONTREAL--(BUSINESS WIRE)--April 20, 2000 CINAR Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CINR CINR Carrier to Interference-plus-Noise Ratio ) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CIF (1) (Common Intermediate Format) A standard video format used in videoconferencing. CIF formats are defined by their resolution, and standards both above and below the original resolution have been established. The original CIF is also known as Full CIF (FCIF). .A.) (TSE:CIF.B.) announced that Canadian securities regulators have not extended the deadlines for the filing of certain financial and other disclosure documents. Financial statements and other documents As a result of the reviews undertaken by the Company and its audit committee and discussions with its auditors, the Company confirms that:
* It has not filed within the statutory delay, being April 18,
2000, audited consolidated financial statements and related disclosure
documents, including the annual report and the annual information
form, for the fiscal year ended November 30, 1999.
* It will not be in a position to file within the statutory
delay, being April 29, 2000, consolidated financial information for
the financial quarter ended February 29, 2000.
The Company continues to work diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d to publish this information within the shortest practicable time frame. "We are keenly aware that our shareholders are anxious to receive accurate financial information on the Company," said Mr. Barrie Usher USHER. This word is said to be derived from a huissier, and is the name of an inferior officer in some English courts of law Archb. Pr. 25. , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of CINAR. "We have taken special measures Special measures is a status applied by Ofsted, the schools inspection agency, to schools in England when it considers that they fail to supply an acceptable level of education and appear to lack the leadership capacity necessary to secure improvements. to produce statements as quickly as possible." Restatements also worked on In addition, the Company confirms that it appears likely that its audited consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge for the financial years ended November 30, 1997 and 1998 will need to be restated for reasons relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc tax incentives and the disclosure of related party transactions, and that the financial information reported for the first, second and third quarters of fiscal 1999 will need to be restated for issues related to tax incentives, disclosure of related party transactions and unauthorised transactions. The nature, extent and timing of the restatements that will be required remain difficult to ascertain as they will depend on the amounts of any payments or adjustments required in respect of tax incentives, the outcome of the special review relating to the previously disclosed US$122 million unauthorised investments, and the effect of the related party transactions. The restatements could include:
(i) reversals of tax credits accrued and received and related
revenues with corresponding adjustments to the amortisation of film
costs;
(ii) changes to the balance sheet to reflect the fact that part
of the unauthorised investments was used as margin for investments in
non-investment grade commercial paper;
(iii) the correct recording of related interest income and
expenses;
(iv) a possible loss in the event the value of the unauthorised
investments is determined to be less than their face value; and
(v) additional disclosures in respect of the related party
transactions.
The reviews being conducted by the Company, its Audit Committee and its auditors have not been completed. Accordingly, the need for restatements could arise from other matters identified in the course of such reviews. Actions taken by the Company In order to assist the Company in its work, PricewaterhouseCoopers LLP LLP - Lower Layer Protocol were retained in March 2000 to provide financial advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal in order, among others, to identify any deficiencies in management information systems and financial controls and to assist management in the work required to prepare the financial records of the Company. The Company and its auditors have also agreed upon Adj. 1. agreed upon - constituted or contracted by stipulation or agreement; "stipulatory obligations" stipulatory noncontroversial, uncontroversial - not likely to arouse controversy a tentative schedule for the completion of the financial statements. This process will include completion of the reviews which have been initiated, the carrying out of various audit procedures relating to the relevant periods, and the identification from time to time of any additional matters which may need to be reviewed and of additional procedures which may need to be established. In order to remedy the failure to file its 1999 audited consolidated financial statements and other continuous disclosure documents required to be filed by it, the Company has also taken the following actions:
* As discussed above, it has retained the services of
PricewaterhouseCoopers LLP in order to assist management in its work.
* It is working diligently to complete the reviews which have
been undertaken and to discuss matters with the appropriate taxation
and certification authorities with a view to resolving these matters
* It is diligently pursuing the resolution of matters relating to
the unauthorised investments it has identified.
* It is responding to information requests from funding agencies
and reviewing with the relevant authorities the manner in which access
to funding programmes and certification processes, which have been
suspended, can be reinstated.
The Company's objective is to prepare and file audited financial statements on or before June 30, 2000 and related continuous disclosure documents shortly thereafter. While the Company cannot commit to such an objective, it will endeavour to meet it. Cease trading order The Commission des valeurs mobilieres du Quebec has issued a cease trade order with respect to all securities of the Company. Other Canadian securities regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities may impose orders under which trading in the shares of the Company by all persons or companies, or by certain persons or companies identified in the orders, be ceased, either permanently or for such period as may be specified in such orders. Any such order would be in addition to any trading halt Trading Halt A pause in the trading of a particular security on one or more exchanges, usually in anticipation of a news announcement or to correct an order imbalance. During a trading halt, open orders may be cancelled and options may be exercised. which NASDAQ or The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. may have imposed with respect to trading on these exchanges. The CvmQ has indicated that to the extent NASDAQ and the TSE were to lift the trading halts currently in effect by them, and that the Company's financial information shall have been disseminated, the Commission reserves the right to change its decision and to issue a cease trade with respect to directors, officers and insiders. Status updates During such time as the Company remains in default of its continuous disclosure requirements, the Company intends, in compliance with the CvmQ's decision, to communicate by way of news release a status report every 15 days from the date hereof relating to its failure to file financial information and other disclosure documents. These status reports will provide information, among other things, as to any changes in the information provided today, as updated from time to time, and any material information concerning the affairs of the Company. "The Commission's decision is consistent with regulatory proposals made public in March 2000 and we intend to comply with its terms," said Mr. Usher. CINAR Corporation is an integrated entertainment and education company involved in the development, production, post-production and worldwide distribution of non-violent, quality programming and educational products for children and families. CINAR's web site can be found at www.cinar.com. This release may include information that could constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provision of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 (U.S.). Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. Forward-looking statements in this document include, but are not necessarily limited to, those relating to the conclusion of the complaint filed by the company, the ability of the Company to satisfactorily respond to various authorities and its assessment of its current cash needs. Actual results or conditions may differ from those anticipated by these and other forward-looking statements. Such forward-looking statements are subject to a number of known or unknown risks and uncertainties. |
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