Westport Fuel Systems receives MCTO

Executive Summary

• Westport Fuel Systems Inc. has voluntarily applied for and received a temporary Management Cease Trade Order (MCTO) from the British Columbia Securities Commission.
• The MCTO restricts trading in the company's securities by the CEO and CFO only, due to a cybersecurity incident that caused a delay in filing annual financial statements.
• The company disclosed an unauthorized access to internal systems on March 20, 2026, which impacted the timely filing of its 2025 audited financials, MD&A, and Form 20-F.
• Core operations remain unaffected, but the company is working with auditors to assess the scope of the incident and determine if internal controls over financial reporting were deficient.

Key Details

• Regulatory Action: A temporary Management Cease Trade Order (MCTO) was issued under National Policy 12-203.
• Restricted Parties: Trading is restricted for the Chief Executive Officer and Chief Financial Officer. Trading by other shareholders and investors is not restricted.
• Cause of Delay: The delay in filing is attributed to a cybersecurity incident involving unauthorized access to certain internal systems, announced on March 20, 2026.
• Delayed Filings: The following documents, required by March 31, 2026, are delayed:
  • Audited consolidated financial statements for the fiscal year ended Dec. 31, 2025.
  • Management Discussion and Analysis (MD&A) relating to the annual financial statements.
  • CEO and CFO certificates relating to the annual financial statements.
  • Annual Information Form on Form 20-F.
• Operational Impact: The company states that core operations remain unaffected, with no disruption to manufacturing or customer delivery.
• Remediation Steps: Westport is working with its auditor to:
  • Assess the scope of the cybersecurity incident regarding documents and data relevant to the annual filings.
  • Determine if internal controls over financial reporting were deficient.
  • Determine if audit procedures need to be changed based on any identified deficiencies.
  • Complete additional audit activity and revise annual documents if required.
• Reporting Schedule: Westport will provide biweekly status updates via news release until the annual filings are completed.

Notable Quotes

• "On March 20, 2026, we announced that we had recently identified unauthorized access to certain internal systems and acted immediately to contain the incident, engaging cybersecurity experts and strengthening our safeguards," said Dan Sceli, chief executive officer of Westport.
• "Importantly, our core operations remain unaffected, with no disruption to manufacturing or customer delivery. As we complete a thorough review to ensure the integrity of our financial reporting, we remain focused on transparency. Notwithstanding this incident, we continue to execute on our strategic priorities and build on the progress achieved over the past year."