Franchise Services of North America (FSNA) has announced that it received a management cease trade order from the Alberta Securities Commission, FSNA’s principal regulator. This is in accordance with National Policy 12-203 — Cease Trade Orders for Continuous Disclosure Defaults.
FSNA applied for the MCTO once it was determined that it would be unable to file its audited annual financial statements, its related management's discussion and analysis and certification of annual filings for the year ended (Sep. 30, 2013) by the prescribed filing deadline of Jan. 28, 2014.
The MCTO imposes trading restrictions on securities of the company — whether direct or indirect — by certain members of the company’s management and remains in effect until the required filings are filed. All other parties are permitted to trade freely in the company's securities.
FSNA is currently working with its auditors to prepare and finalize the required filings. It currently anticipates that it will be in a position to complete the required filings by March 3, says FSNA.
FSNA intends to comply with the provisions of the alternative information guidelines (AIG) set out in section 4.4 of NP 12-203 for as long as it remains in default, including the issuance of bi-weekly default status reports, says the company.