Axion Ventures Re-files its 2017 Interim Financial Statements

VANCOUVER, July 12, 2018 /CNW/ - Axion Ventures Inc. ("Axion" or the "Company") (TSXV: AXV) announced today that, further to press release dated May 31, 2018, it has filed its amended and restated unaudited condensed consolidated financial statements for the: (i) three months ended March 31, 2017; (ii) three and six months ended June 30, 2017; and (iii) three and nine months ended September 30, 2017 (the "Quarterly Re-filings"). The Quarterly Re-filings are available on the Company's SEDAR profile at www.sedar.com.

As disclosed in its press release dated May 31, 2018, the Quarterly Re-filings were a result of re-assessed accounting standard treatment (with respect to Q3 2017) and adjustments made in connection with the re-audit of the Company's financial statements.

"We are very pleased with our team's effort in providing orderly and timely re-filings of our annual financial statements and prior quarterly re-filings," said John Todd Bonner, Chairman and CEO of Axion. "Upon receiving knowledge of deficiencies in our financial statement filings, we took immediate measures to ensure strict compliance, which included engaging a large international auditor, BDO Limited, hiring additional accounting staff, and appointing an experienced partner from Grant Thornton as our CFO. This is not a matter that we take lightly and shall continue allocating the appropriate resources to our continuous disclosure requirements. That said, we are excited about our recent launch of Rising Fire and shall continue to focus on maximizing game revenue."

Adjustments to amended and restated unaudited condensed consolidated financial statements for the three months ended March 31, 2017

A summary of the adjustments in the amended and restated unaudited condensed consolidated interim financial statements for period ended March 31, 2017 are detailed as follows:

Adjustments to amended and restated unaudited condensed consolidated financial statements for the three and six months ended June 30, 2017

A summary of the adjustments in the amended and restated unaudited condensed consolidated interim financial statements for the period ended June 30, 2018 are detailed as follows:

The foregoing adjustments are consistent with those noted in the Company's audited annual financial statements, as restated, and the related press release dated May 31, 2018.

Adjustments to amended and restated unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2017

In the Company's quarterly filing of the unaudited consolidated condensed financial statements for the three and nine months ended September 30, 2017 dated November 29, 2017 ("Q3 2017"), the Company considered itself an "investment entity" in accordance with the definition and characteristics of an "investment entity" set out in IFRS 10. As a result, the Company ceased consolidation of its subsidiaries as at September 30, 2017 and measured its subsidiaries and other investments at fair value through profit or loss in accordance with IFRS 9 "Financial Instruments".

During the audit of the consolidated financial statements of the Company as at and for the years ended December 31, 2017 and 2016, the Company re-assessed its investment entity status with assistance from its professional advisors and determined that the Company had not yet changed to investment entity status from the perspective of accounting standards. Therefore, no exception to consolidation should be adopted during the nine months ended September 30, 2017 or the year ended December 31, 2017.

As a result, the adjustments for the period ended September 30, 2017, were more significant. A summary of the adjustments in these amended and restated unaudited condensed consolidated interim financial statements for the period ended September 30, 2017 are detailed as follows:

The foregoing adjustments were a result of the reversal of fair value gain recognized from the adoption of exception to consolidation from IFRS 10 that increased the Company's total assets and profit for the period significantly in the previous Q3 2017 filing. In addition, the adjustments are consistent with those noted in the Company's audited annual financial statements, as restated, and the related press release dated May 31, 2018.

As a result of the Quarterly Re-filings, the Company anticipates that the applicable provincial securities commissions will remove the Company on their respective defaulting reporting issuer lists.

About Axion Ventures

Axion Ventures is an Investment Issuer with majority ownership in Axion Games, an online video game development and publishing company headquartered in Shanghai, China as well as in True Axion Interactive Ltd., a video game development company headquartered in Bangkok, Thailand cofounded with True Corporation. Axion Ventures also maintains complementary, minority holdings in innovative technology companies.  

www.axionventures.com

Axion Ventures Inc. is listed on the TSX Venture Exchange under the symbol (TSXV: AXV).

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding Forward-Looking Information Certain statements contained in this press release may constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated", "proposed" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Such forward-looking information are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. In particular, this release contains forward-looking information relating to the anticipated filing dates of the various financial statements. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Company. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

SOURCE Axion Ventures Inc.