PotNetwork Holdings, Inc. (OTC Pink: POTN) announced today that the Company filed a request with the Securities and Exchange Commission ("SEC") for the SEC to issue an order allowing the Company to withdraw its Form 10 Registration Statement and its exhibits filed on October 15, 2018 (collectively, the "Registration Statement"). The Company plans to file an updated Registration Statement upon its completion of its 2018 audit, anticipated to occur before the end of the first calendar quarter of 2019.
The withdrawal request was not the result of any discovery of accounting or other irregularities with the Company's Registration Statement. The decision was made by the Company's management after discussions with the SEC concerning the audit report filed as part of the Registration Statement. The auditors were not able to fully audit the books and records of certain discontinued operations of the company's former automotive sales subsidiary for the calendar years 2015 and 2016. The automotive subsidiary was closed prior to the Company's 2017 reorganization and refocus on its current business activities, unrelated to any automotive business.
As may be read in the Registration Statement, the auditors stated that the Company's 2017 financial statements presented fairly the financial condition of the Company since they were able to fully audit this period in accordance with PCAOB standards.
The withdrawal of the Form 10 will also delay the Company's uplisting to OTCQB as the Company cannot apply for an uplisting until its Form 10 Registration Statement is declared effective.
About PotNetwork Holdings, Inc: PotNetwork Holdings, Inc. (OTC Pink: POTN) is a publicly traded company that acts as a holding company for its subsidiaries, First Capital Venture Co., the owner of Diamond CBD, Inc., the maker of Diamond CBD oils.
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