UPDATE as of December 31, 2021
To Our Shareholders
As previously reported, Our Company has been working diligently to have our shares listed on the CSE stock exchange in Canada. We had expected this event to have occurred in December but are not quite there yet due to continued delays caused by certain circumstances and developments.
The key drivers of the listing process have revolved around the completion of the audit of our Consolidated Financial Statements being conducted out of Canada and the inclusion of those Statements with supporting materials to finalise our Prospectus for filing with the Regulators in Canada which also includes a requirement to revise our forecasted outlook and cash requirements primarily related to our India acquisition which as previously reported, all have been impacted by Covid 19.
The completion of these key drivers has been delayed for the following reasons:
Covid 19 has impacted scheduling of all activities throughout our operations in Denmark and India and the organizations we are working with to move our objectives forward. All are manageable, but never the less has caused continued delays and repercussions for us.
The impact on our business has been immense. As we all know, the roll out of our Gateway in India is a significant undertaking and validates our technology and capability to complete on a world class scale. This territory will form the majority of our business in the next couple of years. The acquisition of Mobileware Technologies in India is an important piece to our progress our success. It is well known, that Covid 19 brought business to a stand still in India yet we have been able to implement our gateway and we can now look forward to its contribution to the growth of our business. The implementation however was delayed and was more costly because of that. These costs must be covered in India and we therefore are renegotiating the current contract we have with Mobileware to ensure their success. Currently there are 90 employees in Mobileware supporting the business rollout.
From an audit point of view, we have worked through most issues and have a bit more support material to complete in order to have our auditors in Canada sign off. We are hopeful to be able to release the Consolidated Year end and First Quarter results by mid January.
However, the cash requirements to support the acquisition transaction is now the main driver and focus of our efforts.
In order to facilitate the costly results of these delays we have had to shore up our working capital requirements which are also necessary in order to meet the capital requirements of our listing application in Canada.
The USD $ 1,260,000 share offering at $1.26 a share we reported on has received good interest but has yet to close. We are starting to receive some capital from the commitments and expressions of interest we have received. The holiday break did slow down our efforts and delayed various parties proceeding with their due diligence. We will continue this effort in January.
In addition, we also continue to receive interest to participate in an offering at our listing. As previously reported, we have a received a Capital commitment of USD $ 370,000 at listing, which will be considered as a lead order and will set the price toward a larger offering at listing to support further growth plans. The price of the at listing offering is yet to be determined, however we are confident it will be higher than this pre listing raise.
Overall, these events lead us to report that we now expect the completion of our preliminary prospectus and its filing to occur within the first months of 2022.
It is important we enter the public arena in a position of strength and although our listing has been delayed, we feel our entry to the public markets at the right time will be more favorable received.
We will keep this posting updated as to our progress with regards to the status and timing of filing the prospectus.
Best Regards
Jesper V. Skorstengaard, CEO