DeFi Technologies Announces Change of Auditor

TORONTO, Jan. 08, 2024 (GLOBE NEWSWIRE) — DeFi Technologies Inc. ,company” Or “DEFI“) (NEO: DEFI) (GR: R9B) (OTC: DEFTF), a technology company and the first and only publicly traded company that bridges the gap between traditional capital markets, Web3 and decentralized finance, has announced that it has changed its auditors from BF Borgers CPA PC (“former auditor“) HDCPA Professional Corporation (“successor auditor“) with effect from December 20, 2023. The former Auditor resigned as the Auditor of the Company on his own initiative with effect from December 20, 2023 and the Board of Directors of the Company has appointed the successor Auditor as the Auditor of the Company with effect from December 20, 2023. Appointed at the next Annual General Meeting of the Company.

The Company confirms that, for the time being, for the most recently ended financial year or for any period subsequent to the most recently completed period for which the audit report was issued, the prior auditor’s report There are no objections or modified opinions. The Board of Directors and Audit Committee of the Company approved the resignation of the former Auditor and the appointment of a successor Auditor in place of the former Auditor.

On December 7, 2023, the Canadian Public Accountability Board (“cpab“) issued an enforcement report (“enforcement report”) against the former auditor as a result of the engagement findings report dated October 12, 2023 (“cpab report”) With respect to the audit of the financial statements of the Company for the financial year ended December 31, 2022 (“2022 statement,

The enforcement report identified a number of significant inspection findings, each of which constitutes a separate violation incident (as defined in the CPAB’s rules) with respect to the former auditor. A summary of the findings in the CPAB report that affect the 2022 statements and how such findings may affect the assurances given on the 2022 statements are described in the Auditor Notice of Changes that was filed today and on SEDAR+ is available.

In addition, among various enforcement actions, the former auditor is prohibited from appointing a certain unnamed partner to audit the financial statements of reporting issuers in any Canadian jurisdiction in which the unnamed partner is required to provide public accounting services by the relevant provincial Is not properly licensed to provide. The Chartered Professional Accountants regulatory body, which was a factor in the former auditor’s resignation. A copy of the enforcement report is available here.

As a result of the CPAB report, a corrective plan is required to audit the 2022 statements. The Corporation has received information requests from the former auditor on its remediation plan, including third party confirmations from all of the Company’s digital asset custodians to confirm the existence of digital assets and fair market value, confirmation of the existence of all private investments, Contains confirmation for. Company holdings and their latest financing details, management forecast files and schedules including all assumptions used in the goodwill impairment analysis, confirmation of exchange traded products, working papers on the calculation of staking and lending revenues, management fees and node revenues. To date, the Company has provided all requested information and will continue to provide information as required.

The fact the CPAB report, enforcement report and remediation plan is an “unresolved issue” which is a “reportable incident” in accordance with National Instrument 51-102 – Continuous Disclosure Obligations.NI 51-102“) as it may have a material impact on the auditor’s report provided on the 2022 statements. The Audit Committee has discussed the CPAB report and the corrective plan with the former auditor and has authorized the former auditor to fully respond to the successor auditor’s inquiries regarding the CPAB report, enforcement report and corrective plan. The successor auditor has provided an “advice” NI 51-102 in relation to the CPAB report, the treatment plan requested by the CPAB and the impact on it, which is a “reportable event” (as that term is defined in NI 51-102 Has gone). Scope of audit for financial year 2023. Pursuant to such consultation, the successor auditor has advised that it may perform additional procedures on the balances and transactions at year-end 2022 and/or modify its independent auditor’s report to the extent that any corrective The plan has been requested. CPAB is not completed on time.

The Company has consulted with the former auditor on this issue and the former auditor continues to implement the corrective plan requested by the CPAB. The Company will continue to update the market regarding material developments in the improvement plan for the audit of the 2022 Statement.

In accordance with NI 51-102, the change in auditor notice, together with the required letters from the former auditor and successor auditor, is reviewed by the audit committee and board of directors and filed on SEDAR+.

About DeFi Technologies

DeFi Technologies Inc. (NEO:DEFI) (GR:RB9) (OTC:DEFTF) is a crypto native technology company leading the convergence of traditional capital markets with the world of decentralized finance (DeFi).

With a dedicated focus on industry-leading Web3 technologies, DeFi Technologies aims to provide investors with comprehensive access to the future of finance. Backed by a respected team of professionals with extensive experience in financial markets and digital assets, we are committed to revolutionizing the way individuals and institutions interact with the evolving financial ecosystem.

Join DeFi Technologies’ digital community on LinkedIn and Twitter, and for more information, visit https://defi.tech/.

Cautionary Note Regarding Forward-Looking Information:
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, the appointment of the Company’s auditors; Remedial plan initiated by the former auditor in respect of the CPAB report; the successor auditor’s audit of the financial statements for fiscal year 2023; Development of ETP; The regulatory environment regarding the development and adoption of decentralized finance; Exploration of business opportunities by DeFi Technologies and its subsidiaries; and the merits or potential returns of any such opportunity. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied, as the case may be. Such forward-looking information. Such risks, uncertainties and other factors include, but are not limited to, the acceptance of Valor exchange traded products by the exchanges; The growth and development of the DeFi and cryptocurrency sector; Rules and regulations regarding DeFi and cryptocurrencies; General business, economic, competitive, political and social uncertainties. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events may differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

CBOE Canada Exchange does not accept responsibility for the adequacy or accuracy of this release

For further information please contact:

Investor Relations
[email protected]

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