Item 8.01 Other Events.
West Coast Ventures Group Corp. (the "Company") is providing the following
update on its business operations. As result of the global outbreak of the
COVID-19 virus, on May 14, 2020 the Company evaluated its ongoing effort to
prepare and file its Quarterly Report on Form 10-Q for the three months ended
March 31, 2020 (the "March 2020 10-Q").
Certain Company officers and management, as well as professional staff and
consultants, are unable to conduct work required to prepare our financial report
for the three month period ended March 31, 2020. As a result, the Company
expects to be unable to compile and review certain information required in order
to permit the Company to file a timely and accurate March 2020 10-Q by the
prescribed date without unreasonable effort or expense due to circumstances
related to COVID-19.
The Company will be relying on the Securities and Exchange Commission's Order
under Section 36 of the Securities Exchange Act of 1934 Granting Exemptions From
Specified Provisions of the Exchange Act and Certain Rules Thereunder dated
March 25, 2020 (Release No. 34-88465) (the "Order") to delay the filing of its
March 2020 10-Q due to the circumstances related to COVID-19. In particular,
COVID-19 has caused disruptions in our normal interactions with our auditors.
The Company has a small accounting staff and historically we provided our
auditors with full access to work papers and related information. Because the
audit personnel are now working remotely as much as possible as are our
accounting personnel, this has slowed everyone's workflow and the Company's
ability to complete its financial statements and obtain the necessary consent
from the Company's auditors in order to file the March 2020 10-Q prior to its
due date. The Company has had to develop and implement new policies and
procedures for use in all of it restaurants to foster continued customer
confidence when they purchase food from us during this crisis. The Company has
had to develop and implement procedures for "drive through" pick up orders as
none of our restaurants are equipped with drive through windows. We have
expended considerable time and effort developing multiple means to get the
information out to the buying public that all our restaurants are open for
pick-up and delivery orders. Notwithstanding the foregoing, the Company expects
to file the March 2020 10-Q no later than June 30, 2020 (which is 45 days from
the March 2020 10-Q's original filing deadline of May 15, 2020).
In light of the current COVID-19 pandemic, the Company will be including the
following Risk Factor in its March 2020 10-Q, as may be updated to reflect
subsequent events impacting the Company:
We are unable to predict the impact of COVID-19 on our Company.
The short term impact of COVID-19 are the result of government directives, first
from the City of Denver, CO, and subsequently from the States of Colorado and
Florida requiring only pick-up and delivery orders of food and beverages. Under
these directives we were required to close our dining areas in all our
restaurants. This has caused a fall-off in business, which has been somewhat
offset by an increase in pick-up and delivery orders. We have been able to keep
our restaurants open for pick-up and delivery orders. This in turn has allowed
us to continue to employ our staff at the restaurants. We intend to continue to
pay our employees through this crisis in the hopes that once the crisis has
passed and we are allowed to return to more normal operations we can do so
quickly by bringing our existing staff back in without having to train a large
number of new staff. Our headquarters staff is beginning to work remotely and we
hope to have them completely up to somewhat of a normal workflow shortly.
We cannot, at this stage, begin to evaluate the long term impacts of COVID-19 on
our Company. We are researching what information that will assist us to evaluate
the long term impacts, but currently there is very little information available.
The National Restaurant Association is providing information on an almost daily
basis, but this is clearly an unprecedented situation.
Cautionary Note Regarding Forward-Looking Statements
This Current Report on Form 8-K contains statements as to the Company's beliefs
and expectations of the outcome of future events that are forward-looking
statements as defined in the Private Securities Litigation Reform Act of 1995.
You can identify these statements by the fact that they do not relate strictly
to historical or current facts. Examples of these statements include, but are
not limited to, statements regarding the anticipated impact of the COVID-19
outbreak on travel and physical locations, the anticipated impact of such
outbreak on our results of operations, and possible effect of the continued
closure orders and other restrictions placed on restaurants and the food service
industry on our overall revenues. These forward- looking statements are subject
to risks and uncertainties that could cause actual results to differ materially
from the statements made. These risks and uncertainties include, but are not
limited to, the effects of the COVID- 19 outbreak. The duration of the COVID-19
outbreak and severity of such outbreak; the pace of recovery following the
COVID-19 outbreak; the effect on our customers and suppliers; our ability to
implement cost containment and business recovery strategies; and, the adverse
effects of the COVID-19 outbreak on our business or the market price of our
common stock and the risk factors described in our Annual Report on Form 10-K
for the year ended December 31, 2018, and our subsequent filings with the U.S.
Securities and Exchange Commission, including subsequent quarterly reports on
Forms 10-Q and current reports on Form 8-K, are uncertain. Except as required by
law, the Company does not undertake any obligation to release publicly any
revisions to forward-looking statements made by it to reflect events or
circumstances occurring after the date hereof or the occurrence of unanticipated
events.
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