Nabis Holdings Inc. (NAB)

[nickeli54]

Going Concern
The Company has incurred losses and has had negative cash flows from operations from inception that have primarily been funded through financing activities. The Company will need to raise additional capital during the next twelve months and beyond to support current operations and planned development. As at June 30, 2020, the Company had a working capital deficiency of $14,811,051 and an accumulated deficit of $38,859,180. Of the total mortgages outstanding on June 30, 2020, $4,609,011 was due on August 31, 2020. The Company will not make the August 31, 2020 principal payment and are in discussions with the mortgage holder to either extend the payment due date, failing which, default proceedings are expected to commence. On June 30, 2020, the Company did not make the quarterly interest payment accrued on the convertible debentures as a result of a Force Majeure event as set out in the convertible debenture trust indenture. These factors indicate the existence of a material uncertainty that may cast significant doubt as to the Company’s ability to continue as a going concern. Management intends to finance operating costs over the next twelve months with cash on hand, through the private placement of common shares, issuance of loans and convertible loans.