Item 8.01 Other Events
GSRX Industries Inc. (the "Company") will be relying on the Securities and
Exchange Commission's Order under Section 36 of the Securities Exchange Act of
1934 Modifying Exemptions From Reporting and Proxy Delivery Requirements for
Public Companies dated March 25, 2020 (Release No. 34-88465) to delay the filing
of its Annual Report on Form 10-K for the year ended December 31, 2019 (the
"Report") due to circumstances related to coronavirus, or COVID-19. The
Company's principal operating and manufacturing facilities are located in the
United States and most of its employees are residents of the United States. The
United States has been severely impacted by COVID-19 outbreak, resulting in
authorities implementing numerous measures to try to contain the virus, such as
travel bans and restrictions, quarantines, shelter in place orders, and
shutdowns. In particular, our office staff members responsible for preparing and
providing supporting materials and information to the third-party auditor and
the Company's third-party accountants and tax professionals are located in the
United States, and COVID-19 and the resulting government measures have caused
disruptions in the Company's normal interactions with among such persons.
Because of the United States government-mandated quarantine, the Company's staff
and third-party audit personnel are now working remotely, leading to a
significant delay in the Company's ability to provide relevant materials and
other information to its third-party audit personnel to complete the audit for
the year ended December 31, 2019. The Company's staff is in the process of
providing the requisite information and working together with the audit
personnel to complete the audit, but the audit personnel will need additional
time to conduct their review and request any further information from the
Company to complete the audit, which has delayed the Company's ability to file
the Report prior to the due date. The Company expects to file the Report no
later than May 14, 2020 (which is 45 days from the Report's original filing
deadline of March 30, 2020).
In light of the current COVID-19 pandemic, the Company will be including the
following Risk Factor in its Report, as may be updated to reflect subsequent
events impacting the Company:
The recent coronavirus outbreak may adversely affect our business.
In December 2019, a strain of coronavirus was reported to have surfaced in
Wuhan, China, and has reached multiple other countries, resulting in
government-imposed quarantines, travel restrictions and other public health
safety measures in China, the U.S., Italy, Israel and other affected countries.
The continued outbreak and spreading of the coronavirus has and may continue to
adversely impact our business, as our operations are based in the United States
which has been severely affected by the outbreak. The various precautionary
measures taken by many governmental authorities around the world in order to
limit the spread of the coronavirus has had and may continue to have an adverse
effect on the global markets and global economy, including on the availability
and pricing of employees, resources, materials, manufacturing and delivery
efforts and other aspects of the global economy. The financial downturn has
compelled us to furlough or reduce working hours for much of our operating
staff, as well as third-party contractors, and our clients may encounter
cash-flow issues that will delay their payments to us. We also rely on
third-party professionals to provide services such as the preparation of our
financial statements and to conduct audits, and many of these parties have been
affected by government-imposed precautionary measures, thereby delaying our
receipt of these services. Therefore, the coronavirus has and could continue to
disrupt production and cause delays in the supply and delivery of our products,
may continue to affect our operation and disrupt the marketplace in which we
operate and may have a material adverse effect on our operations. The extent to
which the coronavirus impacts our results will depend on future developments,
which are highly uncertain and cannot be predicted, including new information
which may emerge concerning the severity of the coronavirus and the actions to
contain the coronavirus or treat its impact, among others. The development of
the coronavirus outbreak could materially disrupt our business and operations,
hamper our ability to raise additional funds or sell oor securities, continue to
slow down the overall economy, curtail consumer spending, interrupt our sources
of supply, and make it hard to adequately staff our operations.
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