HUNTWICKE CAPITAL GROUP INC. (OTCMKTS:HCGI) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.

On April 11, 2017, the management and the Board of Directors (the “Board”) of Huntwicke Capital Group Inc. (the “Company”), concluded that the Company’s previously issued financial statements for the quarter ended October 31, 2016 (the “Restated Period”) should no longer be relied upon because of errors related to an accounting treatment of (i) certain advances relating to the acquisition of Huntwicke Advisors, LLC, were accounted for as capital when they were actually expenses of the Company and should have been expensed, (ii) the Company failed to disclose the issuance one share of Series A Preferred Stock on March 23, 2016, and, (iii) the Company’s disclosure relating the purchase of Huntwicke Advisors, LLC and Huntwicke Securities LLC by the Company from WS Advantage LP contained incorrect share amounts (collectively the “Restated Transactions”). The Company agreed to issue to WS Advantage a total of 1,384,923 shares of common stock versus 96,199 shares of common stock as previously reported.

The Company plans to file an amendment to the original Form 10-Q to restate the financial statements for the Restated Period to reflect such adjustments regarding the Restated Transactions. In addition, the failure to disclose the issuance of one share of Preferred Stock on March 23, 2016 may require a restatement of the company’s Form 10-K annual report for the year ended April 30, 2016 and the Form 10-Q for the quarterly period ended July 31, 2016, subject to receiving a valuation report on the value of the preferred share. 

Our management has concluded that there are material weaknesses in internal controls over financial reporting, as we did not maintain effective controls over the selection and application of accounting principles generally accepted in the United States (“GAAP”) related to an accounting treatment of a capital transaction resulting from an extinguishment between related entities. Specifically, the members of our management team with the requisite level of accounting knowledge, experience and training commensurate with our financial reporting requirements did not analyze certain accounting issues at the level of detail required to ensure the proper application of GAAP in certain circumstances.

The Company’s management and Board have discussed the matters disclosed herein with Liggett and Webb, P.A., the Company’s independent registered public accounting firm.

About HUNTWICKE CAPITAL GROUP INC. (OTCMKTS:HCGI)

Huntwicke Capital Group Inc., formerly Magnolia Lane Income Fund, focuses on managing and investing in real property. The Company intends to acquire real estate in small markets. The Company will also develop, syndicate, manage and acquire property for capital appreciation. As of April 30, 2016, the Company owned three properties. The Company’s properties include 7 Grove Street in Topsfield, Massachusetts; 58 Main Street in Topsfield, Massachusetts, and 6 Park St. in Topsfield, Massachusetts. As of April 30, 2016, the 7 Grove Street property included 12,000 square feet of business office, retail and professional space. As of April 30, 2016, the 58 Main Street property, a commercial building, covered 4,000 square feet. As of April 30, 2016, the 6 Park St. property included 4,500 square feet of business office, retail and professional space.

HUNTWICKE CAPITAL GROUP INC. (OTCMKTS:HCGI) Recent Trading Information

HUNTWICKE CAPITAL GROUP INC. (OTCMKTS:HCGI) closed its last trading session 00.00 at 7.00 with shares trading hands.