Le Château to Postpone Annual Reporting Due to Delays Caused by COVID-19

MONTRÉAL, May 22, 2020 (GLOBE NEWSWIRE) -- Le Château Inc. (the “Company”) (TSX VENTURE: CTU) today announced that due to logistics and delays caused by the COVID-19 virus, it is relying on the exemption provided by Decision No 2020-PDG-0023 of the Autorité des marchés financiers (the "Decision") and equivalent exemptions provided by the Ontario Securities Commission, the Manitoba Securities Commission, the Saskatchewan Securities Commission, the Alberta Securities Commission and the British Columbia Securities Commission to postpone the filing of the following continuous disclosure documents (collectively, the "Annual Documents"):

• the Company's annual audited consolidated financial statements for the year ended January 25, 2020 as required by section 4.2 of National Instrument 51-102 - Continuous Disclosure Obligations ("NI 51-102");
  
  

• the Company's annual management report (MD&A) for the year ended January 25, 2020 as required by subsection 5.1(2) of NI 51-102; and
  
  

• the related CEO and CFO certificates for the year ended January 25, 2020 as required by section 4.1 of National Instrument 52‑109 – Certification of Disclosure in Issuers' Annual and Interim Filings.

Pursuant to the Decision, during the period from March 23, 2020 to June 1, 2020, a company required to make certain filings as described in the Decision has an additional 45 days from the deadline otherwise applicable under Quebec securities laws to make the filing. The Company is continuing to work diligently and expeditiously to file the Annual Documents and expects to have them filed by the deadline of July 6, 2020. As required by the Decision, the Company will provide an update via press release no later than June 19, 2020.

Until the Company has filed the Annual Documents, members of the Company's management and other insiders are subject to an insider trading black-out policy that reflects the principles in section 9 of National Policy 11-207 - Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions.

The Company confirms that since the filing of its interim financial report for the nine months ended October 26, 2019, there have been no material business developments other than those that have been publicly disclosed as required under applicable securities laws and except for the potential impact of the COVID-19 pandemic. While it is still too early to assess the impact of the current pandemic, the Company is actively monitoring the business environment in each of the markets in which it operates.

Profile
Le Château is a Canadian specialty retailer and manufacturer of exclusively designed apparel, footwear and accessories for contemporary and style-conscious women and men, with an extensive network of 126 prime locations across Canada and an e-com platform servicing Canada and the U.S. Le Château, committed to research, design and product development, manufactures approximately 30% of the Company's apparel in its own Canadian production facilities.

Forward-Looking Statements
This news release includes forward-looking statements relating to the Company and/or the environment in which it operates, including, without limitation, statements relating to the delay of the filing of the Annual Documents and the expected timing of filing in the future. These forward-looking statements are based on, among other things, the Company's current expectations. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and/or are beyond the Company's control. A number of factors may cause actual outcomes and results to differ materially from those expressed. These factors include the ability of the Company to file the Annual Documents; the magnitude and length of economic disruption resulting from the worldwide COVID-19 outbreak; liquidity risks; the ability of the Company to continue as a going concern; the ability of the Company to successfully implement its business initiatives and whether such business initiatives will yield the expected benefits; changes in consumer spending; general economic conditions and normal business uncertainty; seasonality and weather patterns; changes in the Company's relationship with its suppliers; fluctuations in foreign currency exchange rates; interest rate fluctuations and changes in laws, rules and regulations applicable to the Company; and the risk factors set forth in other public filings of the Company, including the annual Management's, Discussion & Analysis of the Company dated May 27, 2019 and note 2 of the unaudited interim condensed consolidated financial statements of the Company for the nine-month period ended October 26, 2019. The foregoing list of risk factors is not exhaustive and other factors could also adversely affect our results. Therefore, readers should not place undue reliance on these forward-looking statements. In addition, these forward-looking statements speak only as of the date made and the Company disavows any intention or obligation to update or revise any such statements as a result of any event, circumstance or otherwise except to the extent required under applicable securities law.

For further information
Emilia Di Raddo, CPA, CA, President (514) 738-7000
Johnny Del Ciancio, CPA, CA, Vice-President, Finance, (514) 738-7000
MaisonBrison: Pierre Boucher, (514) 731-0000
Source: Le Château Inc.