Business
Yangaroo Provides Update on Reinstatement of Trading and Announces Non-Compliance with Its Term Loan Facility
Toronto, Ontario--(Newsfile Corp. - July 19, 2024) - YANGAROO Inc. (TSXV: YOO) (OTC Pink: YOOIF)...
About this update from Yangaroo Inc.
[{"type":"text","content":"\nYangaroo Provides Update on Reinstatement of Trading and Announces Non-Compliance with Its Term Loan FacilityToronto, Ontario--(Newsfile Corp. - July 19, 2024) - YANGAROO Inc. (TSXV: YOO) (OTC Pink: YOOIF) (\"Yangaroo\", \"Company\"), a software leader in media asset workflow and distribution solutions, today provides an update on its reinstatement application with the TSX Venture Exchange (the \"Exchange\"), and announces that it is not in compliance with its term loan facility (the \"Term Loan\") with the National Bank of Canada (\"NBC\"), initially due to the delayed filing of its annual audited financial statements and corresponding management's discussion and analysis for the year ended December 31, 2024 (the \"Annual Filings\") and the filing of its interim unaudited financial statements for the three months ended March 31, 2024 (the \"Q1 Filings\", together with the Annual Filings, the \"Filings\"), and also as a result of contravention of a financial covenant related to its first fiscal quarter ended March 31, 2024 (\"Q1\").Reinstatement Application Update and CEO and CFO RolesAs previously announced, upon the resignation of the Company's Chief Financial Officer, Frank Guo, Grant Schuetrumpf, Chief Executive Officer of the Company, was appointed interim Chief Financial Officer. As a result of the current lack of the separation of the roles of Chief Executive Officer and Chief Financial Officer roles, the Company is not in compliance with Exchange Policy 3.1, section 5.9. Yangaroo is actively working to remedy this situation and anticipates the appointment of a separate Chief Financial Officer in the near term, following which the Company will be in compliance with Exchange Policy 3.1, which the Company expects will allow the Exchange to accept the reinstatement to trading of the Company's shares. Non-Compliance with Term LoanAs a result of the review by the Exchange of the Company's reinstatement application, the Company announces its non-compliance with the Term Loan, which was disclosed in the Filings.Although it was not identified until after March 31, 2024, effective as at March 31, 2024, the Company had failed to meet one of two financial covenants of the Term Loan, being the fixed charge coverage ratio being less than 1.2X. This has resulted in the reclassification of the Term Loan from non-current liabilities to...