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Delay in Despatch of 2021 Annual Report; and Grant of Waiver From Strict Compliance With Rule 13.46(2)(A) and Rule 13.46(2)(B) of the Listing Rules
VANCOUVER, BC / ACCESSWIRE / June 9, 2022 / SouthGobi Resources Ltd. (TSX:SGQ), (HK:1878) ("...
About this update from Southgobi Resources Ltd.
[{"type":"text","content":"Delay in Despatch of 2021 Annual Report; and Grant of Waiver From Strict Compliance With Rule 13.46(2)(A) and Rule 13.46(2)(B) of the Listing RulesVANCOUVER, BC / ACCESSWIRE / June 9, 2022 / SouthGobi Resources Ltd. (TSX:SGQ), (HK:1878) (\"SouthGobi\" or the \"Company\") announces that reference is made to the announcements of the Company dated March 11, March 24, March 28, March 30, March 31, April 14, April 29, May 17, May 27 and May 30, 2022 in relation to, among others, the delay in publication of the 2021 Audited Annual Results and delay in 2021 Annual Filings (the \"Announcements\"). Unless otherwise defined herein, capitalized terms used in this announcement shall have the same respective meanings as defined in the Announcements.DELAY IN DESPATCH OF 2021 ANNUAL REPORT AND CONVENING OF ANNUAL MEETING OF THE SHAREHOLDERS OF THE COMPANY (\"AGM\")Publication of the 2021 Audited Annual ResultsAs disclosed in the Announcements, the Auditors were unable to render an unmodified opinion for the purpose of the 2021 Audited Annual Results as they had not been able to obtain sufficient evidence to support management's Going Concern Assumptions (as defined below) pursuant to the applicable accounting standards (\"Going Concern Issue\"). The Going Concern Issue arose from the several adverse conditions and material uncertainties that cast significant doubt upon the assumptions that the Company is able to operate until at least December 31, 2022 and will be able to realize its assets and discharge its liabilities in the normal course of operations as they come due (\"Going Concern Assumptions\"), especially given that as at December 31, 2021, the Company's deficiency in assets and working capital deficiency (i.e., excess current liabilities over current assets) reached approximately US$90.5 million and US$42.5 million, respectively. This was aggravated by the fact that, in light of the precautionary measures imposed by the Chinese authorities at the Ceke Port of Entry (\"Ceke Port\") at the border of Mongolia and China in response to the increase of COVID-19 pandemic cases in Mongolia, including the temporary closure of the Ceke Port (which was later re-opened on May 25, 2022 for coal export on a trial basis, with a limited number of trucks permitted to cross the border during this trial period), the implemented restriction of the numbe...