Due
to the outbreak of the novel coronavirus (COVID-19 virus), Discovery Energy Corp. (the “Company”) is
filing this Current Report on Form 8-K to avail itself of an extension to file its Annual Report on Form 10-K for its fiscal ended
February 29, 2020 (the “Annual Report”), originally due on May 29, 2020, relying on an order issued
by the Securities and Exchange Commission (the “SEC”) on March 25, 2020 pursuant to Section 36 of the
Securities Exchange Act of 1934, as amended (Release No. 34-88318) (the “Order”). As such, the Company
will be relying upon the 45-day grace period provided by the Order to delay filing of the Annual Report. The Company will file
the Annual Report by no later than July 13, 2020, 45 days after the original due date of the Annual Report
In
view of coronavirus (COVID-19 virus) pandemic, the Company intends to include the following Risk Factor in the Annual Report:
Pandemics
or disease outbreaks (such as the novel coronavirus, also known as the COVID-19 virus) could materially adversely affect us in
a vareity of ways.
Pandemics
or disease outbreaks such as the novel coronavirus (COVID-19 virus) could materially adversely us in a number of ways. First,
the current pandemic resulted, and future pandemics and epidemics could result, in economic downturns that could affect the market
for our proposed products. Transport restrictions related to quarantines or travel bans, or simply declines in customers desire
and willingness to travel, due to pandemics and epidemics have caused, and can be expected to cause when they occur in the future,
significant declines in demand for products derived from crude oil, such as gasoline and jet fuel. Such declines greatly reduce
not only the amount of products that can be sold on an aggregate basis, but also the price paid for such products. Such results
can be expected to have the following effects:
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harm
our financial results (especially revenues and profits) if and when we enter into commercial production
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harm
our ability to raise funds (if needed) due to a diminished interest in investing in Hydrocarbon exploration and production
companies in general
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depress
our stock price, further harming our ability to raise funds
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Workforce
limitations and travel restrictions resulting from pandemics or disease outbreaks and related government actions may impact many
aspects of our business. We could experience interruptions of, or delays in receiving, supplies of products and services from
third parties due to staffing shortages, production slowdowns or stoppages, disruptions in delivery systems, travel limitations,
mass transit disruptions, and the like. If a significant percentage of persons provided employment and other contractual services
to us were unable to work, including because of illness or travel or government restrictions in connection with pandemics or disease
outbreaks, our operations could be materially adversely impacted.
Moreover,
the spread of pandemics or disease outbreaks such as the COVID-19 virus may also disrupt logistics necessary to import, export,
and deliver products to us or our customers. Ports and other channels of entry may be closed or operate at only a portion of capacity,
as workers may be prohibited or otherwise unable to report to work, and means of transporting products within regions or countries
may be limited for the same reason.
Currently,
uncertainty exists relating to the potential effect of COVID-19 on our business. Infections may become more widespread, exacerbating
an already challenging environment. The extent to which any pandemic or epidemic impacts our business will depend on future developments,
which are highly uncertain and cannot be predicted with confidence, such as the ultimate geographic spread of the disease, the
duration of the outbreak, travel restrictions and actions to contain the outbreak or treat its impact, such as social distancing
and quarantines or lock-downs in the United States and other countries, business closures or business disruptions and the effectiveness
of actions taken in the United States and other countries to contain and treat the disease.
Also,
the current pandemic, and future pandemics and epidemics could hamper our efforts to provide our investors with timely information
and comply with our filing obligations with the SEC.
Special
Note Concerning Forward Looking Statements
This
Report contains statements that constitute forward looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and other securities laws. These forward looking statements are based upon the Company’s present intent,
beliefs or expectations, including, among others, the Company’s estimates relating to the completion of the Annual Report
and related audit, and its ability to sustain its operations without disruptions or delays, but forward-looking statements are
not guaranteed to occur and may not occur for various reasons and circumstances. You should not place undue reliance upon the
Company’s forward-looking statements. Except as required by law, the Company undertakes no obligation to revise or update
any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this Report.