TORONTO, ONTARIO--(Marketwired - Sept. 4, 2014) - GreenStar Agricultural Corp., (TSX VENTURE:GRE) ("GreenStar") today announced that due to a lack of co-operation from its China-based management team, it has not been able to advance the audit for the 2013 financial year. The audit committee, Canadian management, auditors and Canadian legal counsel are all continuing to work to try and move the 2013 audit forward, but there is no visibility on if, or when the 2013 audit will be completed.
All efforts over the past two months, by GreenStar's Audit Committee, with assistance from Chinese legal counsel retained by the Audit Committee to conduct an independent investigation to verify certain critical documentation at GreenStar's banks and the local tax authority, have to date been frustrated by the China-based management team. China based management has to date, failed to co-operate with the investigation process, or provide the necessary funding to the Audit Committee or the independent Chinese counsel that has been engaged to conduct the investigation.
Over this period the China-based management team has also made numerous conflicting representations to the auditors, Chinese and Canadian legal counsel, Board, and the Canada-based management team during the audit process, a consequence of which the Board has been unable to confirm the accuracy of numerous material facts concerning the current situation at the Company and the status of its business operations.
The Audit Committee, the Canadian management team, Canadian and Chinese legal counsel and the Company's auditors have gone to great lengths to try and advance the audit process but the China-based management team has continually failed to fulfil its commitments. These efforts culminated in the Company's auditors in the third week of August, having sent an audit team from their Shanghai affiliate to the Company's offices in Pucheng at the request of the Audit Committee, the Board and China based management. This audit team was to conduct certain procedures to determine the steps required to proceed with their audit. Despite the fact that the Audit Team were assured that they would receive the co-operation of the China based Management, commitments were not met and as a consequence, the auditors returned to Shanghai having been unable to make any progress toward their enquiries into ascertaining what would be required for them to proceed with the 2013 audit.
The Company's Board is continuing to investigate ways in which they may obtain independent confirmation regarding the business operations of the Company in China, and determine appropriate steps that should be taken in order to secure GreenStar's China-based funds and assets.
There is no assurance that any action by the Board will be successful given the lack of cooperation and funding on the part of the China-based management team and the limitations imposed by local laws and regulations in China.
Neither the TSX Venture Exchange nor its Regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution Regarding Forward-Looking Information:
Certain statements in this press release may constitute ''forward looking'' statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. When used in this press release, such statements may use such words as ''may'', ''will'', ''expect'', ''believe'', ''plan'' and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward looking information in this press release includes, but is not limited to but is not limited to, Canadian management's expectation on difficulty in safeguarding Company assets in China. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company believes the expectations reflected in the forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and readers are cautioned not to place undue reliance on forward-looking information contained in this press release. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking information contained in this press release include, but are not limited to: international, national and local business and economic conditions; political or economic instability in the Company's markets; competition; legislation and governmental regulation; and accounting policies and practices. The foregoing list of factors is not exhaustive. Please see the Company's annual MD&A dated April 25, 2013, available on www.sedar.com, for a more detailed description of the risk factors. The Company undertakes no obligation to update publicly or revise any forward looking information, whether a result of new information, future results or otherwise, except as required by law.
GreenStar Agricultural Corporation