Tenet Announces Corrective Continuous Disclosure Filings Following OSC Review

Executive Summary

• Tenet Fintech Group Inc. has restated its financial statements and MD&As for the periods ending December 31, 2024, March 31, 2025, June 30, 2025, and September 30, 2025 to address material deficiencies identified by the Ontario Securities Commission (OSC).
• The restatements correct significant disclosure gaps spanning revenue recognition, related party transactions, China operations oversight, credit risk modeling, and forward-looking information.
• The corrective filings were submitted at the OSC's request to support the full revocation of a prior failure-to-file cease trade order, and the company will be placed on the OSC's Refilings and Errors List for three years.

Key Details

• Restated Periods: 2024 Annual Financial Statements (restated as comparatives within the 2025 Annual Financial Statements), plus Restated Interim Financial Statements for March 31, 2025, June 30, 2025, and September 30, 2025.
• Regulatory Context: Corrections were made at the request of OSC staff to facilitate the full revocation of a failure-to-file cease trade order (FFCTO) originally issued on May 7, 2025.
• Deficiencies Corrected:
• Lack of clarity on revenue recognition and asset impairment methods
• Inadequate disclosure of related party transactions and missing related party transaction policy
• Missing explanations on board oversight of China operations per OSC Staff Notice 51-720
• Inadequate credit risk exposure and Expected Credit Loss (ECL) model disclosure
• Insufficient basis for forward-looking information and presence of forward-looking statements regarding development-stage products
• Lack of detail on segmented revenue declines and period-over-period variances
• Inadequate description of China's business, legal, political, and cultural environment
• Missing risk disclosures regarding reliance on few large clients/suppliers in China
• Inadequate disclosure on fund transfer processes/risks with Chinese subsidiaries
• Unexplained complex corporate ownership structure in China
• Lack of details on collateral/guarantors for Chinese client loans
• Insufficient risk disclosure for the new data-focused business model in China
• Unclear revenue-generating operational segments and fair value estimation methods for financial assets
• Misclassification of certain financial instruments
• Omission of insider identification due to subsidiary roles
• Unclear nominee shareholder structure and associated risks for Asia Synergy Financial Capital subsidiary
• Enhanced disclosure on safeguarding Chinese subsidiaries' corporate chops
• Regulatory Consequence: The company will be placed on the OSC's Refilings and Errors List for three years from the refiling date, per OSC Staff Notice 51-711.
• Availability: Refiled MD&As and financial statements are available under the company's profile at www.sedarplus.com.