Reinstatement for Trading

Clean Seed Capital Group Ltd. (NEX: CSX.H) is set to have its common shares reinstated for trading on the TSX Venture Exchange around July 3, 2025, following the rescission of a cease trade order (CTO) on June 10, 2025, after the company filed all outstanding financial statements. Despite the trading resumption, the company faces significant financial distress, including a net working capital deficit of $13.5 million as of March 31, 2025, approximately $2.1 million in past-due government loans, and an additional $6.6 million in outstanding promissory and convertible notes. Clean Seed is also non-compliant with corporate law regarding its annual general meeting, resulting in a 90-day Exchange Notice, and is actively evaluating options to raise additional debt and equity financing to address its deficit and fund future operations, with no assurance of success.

Analysis

Clean Seed Capital Group's (NEX: CSX.H) reinstatement for trading on the TSX Venture Exchange, expected around July 3, 2025, follows a prolonged suspension and the resolution of a Cease Trade Order by filing delinquent financial statements. While the resumption of trading is a procedural step forward, it is critically overshadowed by the company's severe financial distress. As of March 31, 2025, the company reported a net working capital deficit of $13.5 million. Its balance sheet is encumbered by significant liabilities, including $2.1 million in past-due government loans, $5.9 million in high-interest promissory notes (with rates up to 18%), and $762,000 in convertible notes. This debt structure indicates a high cost of capital and significant refinancing risk. Furthermore, governance concerns persist, evidenced by the failure to hold an AGM since December 2022, resulting in a 90-day Exchange Notice. The company's survival is contingent on its ability to raise new capital and restructure existing debt, but the press release explicitly states there is no assurance of success, positioning the entity in a precarious operational and financial state.

Key Decisions for Investors

• Investors should treat the resumption of trading as a highly speculative event, given the reinstatement is overshadowed by a critical $13.5 million working capital deficit and over $8.7 million in outstanding, high-interest, and past-due debt obligations.
• The primary risk factor is the company's ability to secure new financing; any capital raise is likely to be significantly dilutive to the 95 million existing shares, and failure to secure funds presents a going-concern risk.
• Closely monitor announcements regarding debt renegotiations and the upcoming September AGM, as these events will be critical indicators of management's ability to execute a turnaround and rectify its history of regulatory non-compliance.