D-BOX recovers from ransomware cyberattack and announces the gradual resumption of its activities
July 28 2021 - 7:00AM
D-BOX Technologies Inc. (“D-BOX” or the "Corporation") (TSX: DBO),
a world leader in haptic and immersive entertainment, announces
that the Corporation is gradually resuming its activities following
a ransomware cyberattack against its internal IT systems announced
on July 14, 2021. All major IT systems have been restored and the
restoration work should be finalized in the next few weeks.
Production was never completely interrupted, and recovery of its
various internal IT systems has begun. Although the release of the
Corporation’s unaudited and condensed interim consolidated
financial statements and management’s discussion and analysis for
the quarter ended June 30, 2021 (the “Required Filings”) will be
deferred, D-BOX is nevertheless in a position to announce that it
anticipates, on a provisional basis, estimated revenues of
$ 3.1 million for the first quarter ended June 30, 2021, an
increase of approximately 40% compared to the same quarter last
year.
D-BOX has always maintained a clear separation
between its internal IT systems and services for its partners. The
Corporation believes that the impact of the cyberattack was limited
to internal systems, and that its services to studios and theatre
operators were not affected. In addition, according to the report
of an external firm specializing in cyber incidents, analyses show
that its clients’ systems were not breached or affected during the
cyberattack. Therefore, D-BOX does not anticipate that any security
patches to its services or software updates will be required for
its partners as a result of the cyberattack. In addition, the
Corporation has, as a precautionary measure, offered all its
employees and directors an identity theft and fraud protection
service through Equifax for a period of 12 months.
“Security is a top priority and D-BOX is
committed to continuing to take all appropriate measures to ensure
the highest integrity of all our systems,” said Sebastien Mailhot,
President and CEO of D-BOX. “I’m proud of the efforts of our IT
team and external advisors, as they mitigated the attack and
accomplished an enormous amount of work in order to resume
activities. D-BOX is committed to continuing to communicate
directly with all of its clients and partners, whom we thank for
their patience as we resolve this situation. The Corporation
believes that the financial impact of this cyberattack on the
results should be negligible."
As a result of the cyberattack, the release of
the Required Filings will be deferred until after the prescribed
August 14, 2021 deadline. Management will work to produce the
Required Filings as soon as possible, but the delay could be two to
four weeks.
The Corporation has applied to the applicable
Canadian securities regulatory authorities for a management cease
trade order (“MCTO”). There is no certainty that the MCTO will be
granted. Until the Required Filings are filed, the Corporation
intends to satisfy the provisions of the alternative information
guidelines in accordance with National Policy 12-203 – Management
Cease Trade Orders by issuing bi-monthly status reports in the form
of news releases.
The applicable Canadian securities regulatory
authorities may issue a general cease trade order against the
Corporation for failure to file the Required Documents within the
prescribed time period or sooner if the Corporation fails to file
its status report during the prescribed time limits. There are no
insolvency proceedings that the Corporation is subject to and there
is no other material information concerning the affairs of the
Corporation that has not been previously disclosed.
ABOUT D-BOXD-BOX creates and
redefines realistic, immersive entertainment experiences by moving
the body and sparking the imagination through effects: motion,
vibration and texture. D-BOX has collaborated with some of the best
companies in the world to deliver new ways to enhance great
stories. Whether it’s movies, video games, music, relaxation,
virtual reality applications, themed entertainment or professional
simulation, D-BOX creates a feeling of presence that makes life
resonate like never before. D-BOX Technologies Inc. (TSX: DBO) is
headquartered in Montreal with offices in Los Angeles, USA and
Beijing, China. Visit D-BOX.com.
FOR FURTHER INFORMATION, PLEASE
CONTACT: |
|
|
D-BOX TECHNOLOGIES INC. |
Stéphane Vidal |
David Montpetit |
Vice President, Marketing and Communication |
Chief Financial Officer |
450-442-3003, ext. 373 |
450-442-3003, ext. 296 |
svidal@d-box.com |
dmontpetit@d-box.com |
CAUTION REGARDING FORWARD-LOOKING
INFORMATION
Certain information included in this press
release may constitute “forward-looking information” within the
meaning of applicable Canadian securities legislation.
Forward-looking information may include, among others, statements
regarding the future plans, activities, objectives, operations,
strategy, business outlook, and financial performance and condition
of the Corporation, or the assumptions underlying any of the
foregoing. In this press release, words such as “may”, “would”,
“could”, “will”, “likely”, “believe”, “expect”, “anticipate”,
“intend”, “plan”, “estimate” and similar words and the negative
form thereof are used to identify forward-looking statements.
Forward-looking statements should not be read as guarantees of
future performance or results, and will not necessarily be accurate
indications of whether, or the times at or by which, such future
performance will be achieved. Forward-looking information, by its
very nature, is subject to numerous risks and uncertainties and is
based on several assumptions which give rise to the possibility
that actual results could differ materially from the Corporation’s
expectations expressed in or implied by such forward-looking
information and no assurance can be given that any events
anticipated by the forward-looking information will transpire or
occur, including but not limited to the future plans, activities,
objectives, operations, strategy, business outlook and financial
performance and condition of the Corporation.
Forward-looking information is provided in this
press release for the purpose of giving information about
Management’s current expectations and plans and allowing investors
and others to get a better understanding of the Corporation’s
operating environment. However, readers are cautioned that it may
not be appropriate to use such forward-looking information for any
other purpose.
Forward-looking information provided in this
press release is based on information available at the date hereof
and/or management’s good-faith belief with respect to future events
and are subject to known or unknown risks, uncertainties,
assumptions and other unpredictable factors, many of which are
beyond the Corporation’s control.
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