Item 8.01 Other Events.
Grand Havana, Inc. (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 Annual Report on Form 10-K for the year
ended December 31, 2019 (the "2019 10-K") 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 our accounting personnel, this has slowed everyone's
workflow and the Company's ability to complete its audit and file the 2019 10-K
prior to its due date is delayed. Notwithstanding the foregoing, the Company
expects to file the 2019 10-K no later than May 14, 2020 (which is 45 days from
the 2019 10-K's original filing deadline of March 30, 2020).
In light of the current COVID-19 pandemic, the Company will be including the
following Risk Factor in its 2019 10-K, as may be updated to reflect subsequent
events impacting the Company:
We are unable to predict the impact of COVID-19 on our company.
Miami-Dade County and the City of Miami have issued orders that only "essential"
businesses remain open. We are not considered an "essential business" and have
closed our warehouse thereby limiting our ability to make deliveries and service
equipment. Because of this we expect a significant decline in our revenues until
such time that these emergency orders are lifted, and it is safe for our
employees to return to work. Additionally, the COVID-19 pandemic has had a
particularly significant impact on hotels and restaurants, two of our main
revenue sources. The ability of hotels and restaurants to recover once travel
and other restrictions are removed will have a significant impact on our ability
to bring revenue back to levels to prior levels.
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