The Securities Commission has granted Hybrid Power Solutions Inc. (the Filer) an exemption from the requirement that audited financial statements must be accompanied by an auditor’s report expressing an unmodified opinion, as per paragraph 3.3(1)(a)(i) of National Instrument 52-107 Financial Disclosure. This exemption applies to the Filer’s financial statements for the years ended May 31, 2023, and May 31, 2022.
The Filer, a clean energy company, is a reporting issuer in multiple Canadian jurisdictions and has its common shares listed on the Canadian Securities Exchange. The company underwent a corporate restructuring and name change, and its auditor, MNP LLP, expressed a qualified opinion on the 2022 financial statements due to an inability to verify opening inventory quantities.
Despite this qualified opinion, the Filer’s interim financial statements for the six-month period ending November 30, 2022, received an unmodified audit opinion. The Filer has since filed a final long form prospectus, which includes the audited interim financial statements and is in compliance with securities legislation, except for the qualified opinion issue.
The exemption was granted based on the condition that the Filer’s business is not seasonal and that there is a subsequent audited period of at least six months with an unmodified opinion, as per section 5.8(2) of 41-101CP. The Filer’s 2023 financial statements contain an unmodified opinion for the year ended May 31, 2023, except for the comparative information from 2022.
The Filer sought the exemption to rectify its default in securities legislation and to qualify for filing a short form base shelf prospectus under NI 44-101 and NI 44-102. The exemption was granted by the British Columbia Securities Commission, which is the principal regulator, and the decision also represents the decision of the securities regulatory authority in Ontario. The exemption is contingent upon the Filer meeting all other compliance requirements of NI 52-107.