Diamond Estates to file 2025 financials late

Executive Summary

• Diamond Estates Wines & Spirits Inc. has announced a delay in filing its Year-End 2025 Financial Statements, Management’s Discussion & Analysis (MD&A), and CEO/CFO certificates, which were originally due by July 30, 2025.
• The delay is attributed to additional audit procedures required by the external auditor regarding certain transactions and estimates to ensure compliance with accounting standards.
• The company expects to be noted in default by Canadian securities regulators, leading to a Failure-to-File Cease Trade Order (CTO) from the Ontario Securities Commission. This CTO will prohibit trading in the company's securities and result in the suspension of shares from the TSX Venture Exchange until the filings are completed and the order is revoked.

Key Details

• Filing Delay: The company is late filing its financial statements, MD&A, and executive certificates for the fiscal year ended March 31, 2025.
• Original Deadline: July 30, 2025.
• Reason for Delay: The external auditor requires additional procedures to verify certain transactions and estimates included in the financial statements to ensure they fairly present the financial position and results of operations.
• Regulatory Consequence: The company expects to be noted in default by applicable Canadian securities regulatory authorities.
• Cease Trade Order (CTO): The Ontario Securities Commission (principal regulator) is expected to issue a failure-to-file CTO in accordance with National Policy 11-207.
• Trading Impact: The CTO will prohibit trading in the company's securities in all Canadian jurisdictions where it is a reporting issuer.
• Exchange Suspension: Shares are expected to be suspended from trading on the TSX Venture Exchange (TSX-V) until the CTO is revoked and all TSX-V requirements are satisfied.
• Resolution Timeline: The company expects to file the required documents as soon as practicable; the CTO will remain in effect until after the required filings are submitted.

Notable Quotes

• "The delay in filing is due to the need for additional audit procedures required by the company's external auditor in connection with certain transactions and estimates included in the financial statements. These additional procedures are necessary to ensure that the financial statements present fairly, in all material respects, the financial position and results of operations of the company in accordance with applicable accounting standards."
• "The company is working diligently with its auditor to complete the audit and expects to file the required filings as soon as practicable."