This is a change from where we were yesterday. The Canadian Cease Trade is a pretty big deal, but one that the company believe will be remedied in the next few weeks. It's my understanding that this will not significant impact the US trading of the FTMR's shares.
Consider the following questions.
And how did this information become public?
The company dislosed it. They have been transparent from the very beginning of this issue. They switched auditing firms, and it seems to me, they've been following their guidance and have been reporting as they've been directed.
What is the issue?
They've already disclosed the issue. It's an accounting matter of how the acquired oil and gas properties were or should have been classified.
Why do all the different 10-Qs and the 2018 10-K men to be amended?
The accounting issues took place in Q1 of fiscal 2018 (between March and May 2017), when the listed properties were acquired. All of the subsequent filings include and rely upon the information from that original Q1 filing. As they are all downstream, they will each need to be corrected to reflect the changes to the Q1 filing.
Are there any other disclosed issues?
From what I've read the only other issue mentioned was the valuation of the shares issues for the acquired properties... whether they should be listed at the private placement price of $2.00 per share or valued by the then current trading price.
How significant or impactful are these accounting issues?
I'm not an accountant, so this is just my best guess. I believe this is a whole lot to do about nothing. According to the earlier press release, the company believes it will have the filings corrected and refiled before August 9, 2019
Watch for opportunities with those you trust.
