Our Company has been working diligently to have our shares listed on the CSE stock exchange in Canada and we are happy to say the goal line is in sight.
We had expected this event to have occurred by now but are not quite there yet due to delays caused by certain circumstances and developments.
The key drivers of the listing process revolve 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.
The completion of these key drivers has been delayed for the following reasons:
The key drivers of the listing process revolve 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.
The completion of these key drivers has been delayed for the following reasons:
The main delay has been caused by Covid 19. 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. Never the less we charged on with the implementation of our Gateway in India and we are pleased to say all systems are go and we will be able to report on Gateway Licencing Revenue in this quarter. However, the delays of our India implementation caused by Covid 19 has resulted in work arounds, renegotiations of agreements, revised forecasts and budgets which all has had an impact on our cash flow and the completion of our audited Consolidated Financial reporting and preparation of our Prospectus.
The cash requirements to support the acquisition transaction, the accounting and planned reporting of the India transaction and the expected positive impact on the business and auditing thereof has also caused a delay in the auditor releasing the June 2021 year end result as much new and additional information needed to be gather
In addition, the fact that this is a first-time audit for our new auditors with audit requirements in Denmark, Canada and eventually India, has resulted in additional delays beyond what we expected with regards to completing the audit for the prospectus. We are happy to report that the consolidated audit is almost complete and the ground work is now in place and set to be able to report on the Consolidated entity in a timely manner going forward. We expect the wind up the audit in the next 7 to 10 days.
As soon as we close off on the audit, we will work to completing the prospectus and expect to be able file the prospectus with in this month of December.
The reality is that we under estimated the timing and what it would take to bring all factors together to complete the first Consolidated audit necessary to result in in the filing of the prospectus.
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. Fortunately, Investors understanding the value proposition of Kvanto are providing the necessary capital to meet our goals as we grow this Company.
We are happy to report that we have floated a USD $ 1,260,000 share offering at $1.26 a share and are filling the book with commitments. In addition, we also have a Capital commitment of USD $ 370,000 at listing, which is considered as a lead order 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.
Our potential is just proving itself out and we see positive growth ahead.
Our value proposition we strongly believe in and although our public listing has not occurred yet, we continue to build our business base which will translate to value to our shareholders.
We will keep this posting updated as to our progress with regards to the status and timing of filing the prospectus. We can assure you, all of our individuals associated with the audit, capital and securities reporting are working diligently and as fast as they can to result in the filing off this Prospectus.
We are all anxious to achieve this milestone and we are confident we will be able to announce the filing of the Company’s prospectus as soon as possible.
Kind Regards / Viele Grüße
Board of Directors
Jesper V. Skorstengaard
CEO-Founder