Item 8.01 Other Events
EXEO Entertainment, Inc. (the "Registrant") is furnishing this Current Report on
Form 8-K to indicate it intends to rely on the Order of the Securities and
Exchange Commission of March 4, 2020 (Release No. 34-88318) (the "Order"), which
allows for the delay of certain filings required under the Securities and
Exchange Act of 1934, as amended. The Order provides that a registrant subject
to the reporting requirements of Exchange Act Section 13(a) or 15(d), and any
person required to make any filings with respect to such a registrant, is exempt
from any requirement to file or furnish materials with the Commission under
Exchange Act Sections 13(a), 13(f), 13(g), 14(a), 14(c), 14(f), 15(d) and
Regulations 13A, Regulation 13D-G (except for those provisions mandating the
filing of Schedule 13D or amendments to Schedule 13D), 14A, 14C and 15D, and
Exchange Act Rules 13f-1, and 14f-1, as applicable.
The Registrant is relying on the Order in connection with the Registrant's
Quarterly Report on Form 10-Q for the quarter ended February 29, 2020, as a
result of the circumstances set forth below. The Registrant's operations and
business have experienced disruption due to the unprecedented conditions
surrounding the COVID-19 pandemic spreading throughout the United States and the
world. Due to the timing of initial and evolving governmental orders and
guidelines impacting the Registrant's financial operations in Las Vegas, Nevada,
as well as other contributors to the process of financial statement preparation,
relating to social distancing, stay in place orders, travel and other
restrictions on business, necessary and immediate access of personnel, records
and information have been adversely effected and has caused a delay in the
completion of the Registrants reviewed financial statements for the quarter
ended February 29, 2020 to be included in the Registrants Quarterly Report on
Form 10-Q.
Accordingly, in reliance upon the Order, the Registrant expects to file its
Quarterly Report on Form 10-Q no later than 45 days after the due date of filing
of April 14, 2020, unless the COVID-19 circumstances do not change and cause a
further delay, in which case we will file for an extension and amendment to this
Current Report on form 8-K.
Pursuant to the Order, following are the Risk Factors disclosing the impact of
COVID-19 onto the Registrant's business and operations:
Risks Related to the COVID-19 Pandemic
The recent COVID-19 pandemic may adversely affect our business, results of
operations, financial condition, liquidity, and cash flow.
While the complete impact on our business from the recent outbreak of the
COVID-19 coronavirus is unknown at this time and difficult to predict, various
aspects of our business are being adversely affected by it and may continue to
be adversely affected.
As of the date hereof, COVID-19 has been declared a pandemic by the World Health
Organization, has been declared a National Emergency by the United States
Government and has resulted in several states being designated disaster zones.
COVID-19 coronavirus caused significant volatility in global markets, including
the market price of our securities. The spread of COVID-19 coronavirus has
caused public health officials to recommend precautions to mitigate the spread
of the virus, especially as to travel and congregating in large numbers. In
addition, certain states and municipalities have enacted, and additional cities
are considering, quarantining and "shelter-in-place" regulations which severely
limit the ability of people to move and travel, and require non-essential
businesses and organizations to close.
Thus far, these restrictions have adversely affected our business, results of
operations and financial condition. It is unclear how such restrictions, should
they continue for an extended period, which will contribute to a general
slowdown in the global economy, will affect our business, results of operations,
financial condition and our future strategic plans.
To date, the demand for our products has decreased and the ability of our
customers to make payment for the products they currently purchase has been
negatively impacted. It is unclear how a prolonged outbreak with travel,
commercial and other similar restrictions, may adversely affect our business
operations and the business operations of our customers and suppliers. However,
we anticipate a prolonged period will have a negative effect on our business
operations.
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Recent shelter-in-place and essential-only travel regulations have negatively
impacted many of our customers. In addition, while our products are manufactured
outside the United States, we still could experience significant supply chain
disruptions due to interruptions in operations at any or all of our suppliers'
facilities. If we experience significant delays in receiving our products, we
will experience delays in fulfilling orders and ultimately receiving payment,
which could result in loss of sales and a loss of customers, and adversely
impact our financial condition and results of operations.
Risks Related to Securities Markets and Investments in Our Securities
General securities market uncertainties resulting from the COVID-19 pandemic.
Since the outset of the pandemic the US and worldwide national securities
markets have undergone unprecedented stress due to the uncertainties of the
pandemic and the resulting reactions and outcomes of government, business and
the general population. These uncertainties have resulted in declines in all
market sectors, increases in volumes due to flight to safety and governmental
actions to support the markets. As a result, until the pandemic has stabilized,
the markets may not be available to the Registrant for purposes of raising
required capital. Should we not be able to obtain financing when required, in
the amounts necessary to execute on our plans in full, or on terms which are
economically feasible we may be unable to sustain the necessary capital to
pursue our strategic plan and may have to reduce the planned future growth and
scope of our operations.
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