As part of its cost cutting measures, the Company commenced a process of renegotiating its annual audit fees with its auditor, Ernst & Young LLP in early March. Simultaneously, the Company contemplated and evaluated engaging a new auditor in its effort to reduce audit costs if an acceptable arrangement could not be reached with E&Y. As a result of this process, the commencement of the audit of the Company's financial statements for the year ended December 31, 2009 was delayed. An arrangement acceptable to the Company was reached with E&Y on March 16, 2010, and the audit of the Company's financial statements for the year ended December 31, 2009 commenced immediately thereafter. However, because of the delay in the commencement of the audit, the Company has not completed the audit in time to file the Required Disclosure by the Filing Deadline.
The Company has applied for a Management Cease Trade Order pending the filing of the Required Disclosure via SEDAR. The Company is confident that the Financial Disclosure will be filed by no later than April 30, 2010. The Management Cease Trade Order is expected to be imposed against some or all of the persons who are directors, officers or insiders of the Company instead of a cease trade order being imposed against all securities of the Company. Such an order would not generally affect the ability of persons who are not directors, officers or insiders of the Company to trade the securities of the Company pending the filing of the Required Disclosure via SEDAR.