The CFO and most of the board, including entrepreneur Kevin Harrington, also resigned last week.
Beleagured YourWay Cannabis Brands Inc. (CSE: YOUR) (OTC: YOURF) told investors that it is still behind on reporting its financial results from 2022 and hasn’t even begun preparing the results for 2023.
The company also announced it may have a buyer for its Labtronix company.
YourWay said that auditors were working through the 2022 results, which is “consuming significant company resources and the timeline for completion is yet to be determined.” Tax returns for 2022 also have not been filed.
The company said that management’s primary objectives have included achieving financial stability, conducting essential financial audits to lift the cease trade order, and relisting its shares on the CSE.
Last week, the company announced that CEO and Chairman Jakob Ripshtein resigned from his positions, and as a result, Brett Mecum, a current board member, was appointed as the chairman of the board. The company also hired Mason Cave as interim CEO and board member. Cave was CEO of Venom before it was acquired by YourWay.
“I am looking forward to helping the company resolve the issues at hand, streamline operations, significantly reduce expenses, and provide an opportunity for shareholders to realize some value from the Venom asset,” Cave said.
In addition, CFO Sandra Ceccacci was terminated for cause, and directors Kevin Harrington, Eula Adams, and Lily Dash resigned. The company said it is currently seeking a replacement for the CFO position.
YourWay told investors that it and Labtronix have been named in a lawsuit by Trulieve Cannabis Corp., the defense of which is consuming significant company resources. Labtronix also experienced a notable decline in sales over the past few months, aligning with the lawsuit.
The company said that it has received a letter of intent from an arm’s length entity based in Arizona to buy YourWay’s wholly owned subsidiary Labtronix for $3 million. The deal would assume the Trulieve lawsuit and another outstanding employee lawsuit, and the buyer would take on all existing debts and tax liabilities of Labtronix.
YourWay auditing its financials would be much easier with the sale of Labtronix.
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