Bemax Inc (BMXC)

[Snug Harbour]

Obviously street doesn't like the 8K

On March 30, 2017, the Company’s board of directors concluded that the Company’s previously issued audited financial statements for the years ended May 31, 2015, May 31, 2016, and the unaudited financial statements for the quarterly periods ended August 31, 2015, November 30, 2015, February 28, 2016, August 31, 2016, November 30, 2016, included in the Company’s Quarterly Reports on Form 10-Q (the “Previously Issued Financial Statements”) filed with the SEC, should no longer be relied upon and should be restated because of certain errors in those financial statements (the “Restatement”). Management evaluated these errors and determined that they had a material impact on the Previously Issued Financial Statements.

These errors primarily related to the calculations of convertibles notes issued by the Company in 2016, as well as errors not properly recording company’s inventory as assets and revenue transactions.