Item 4.01. Changes in Registrant’s
Certifying Accountant.
On November 10, 2016,
the Audit Committee (the “Committee”) of the Board of Directors of Axar Acquisition Corp. (the “Company”)
engaged WithumSmith+Brown, PC (“Withum”) as the Company’s independent registered public accounting firm, effective
immediately. The Committee dismissed KPMG, LLP (“KPMG”) as the Company’s independent registered public accounting
firm on November 10, 2016.
During the Company’s
fiscal years ended December 31, 2015 and 2014 and the subsequent period through November 10, 2016, the date the Company engaged
Withum, the Company did not consult with Withum regarding the application of accounting principles to a specified transaction,
either completed or proposed, or the type of audit opinion that might be rendered on the Company’s financial statements.
Withum did not provide any written reports or oral advice considered by the Company in reaching a decision as to the accounting,
auditing or financial reporting or any of the matters or events set forth in Item 304 of Regulation S-K.
During the period from
July 25, 2014 (inception) to December 31, 2014, the year ended December 31, 2015 and the subsequent period through November 10,
2016, the date the Company dismissed KPMG, (i) there were no disagreements with KPMG on any matter of accounting principles or
practices, financial statement disclosure, or auditing scope or procedure that, if not resolved to their satisfaction, would have
caused them to make reference to the subject matter of the disagreement in connection with its report, or (ii) reportable events
as defined in Item 304(a)(1)(v) of Regulation S-K.
The audit report of
KPMG on the balance sheets of the Company as of December 31, 2015 and 2014 and the related statements of operations, stockholders’
equity, and cash flows for the year ended December 31, 2015 and period from July 25, 2014 (inception) to December 31, 2014 did
not contain an adverse opinion or a disclaimer of opinion, nor was it qualified or modified as to uncertainty, audit scope or accounting
principles except as follows:
KPMG’s report
on the balance sheets of the Company as of December 31, 2015 and 2014 and the related statements of operations, stockholders’
equity, and cash flows for the year ended December 31, 2015 and period from July 25, 2014 (inception) to December 31, 2014 contained
a separate paragraph stating that “The accompanying financial statements have been prepared assuming the Company will continue
as a going concern. As discussed in Note 2 to the financial statements, the Company will cease all operations, except for the purpose
of winding up, redeem all public shares outstanding and dissolve and liquidate in the event that the Company does not consummate
an initial business combination by October 7, 2016. This condition raises substantial doubt about its ability to continue as a
going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.”
The Company has provided
KPMG a copy of the above disclosures and has requested that KPMG furnish it with a letter addressed to the U.S. Securities and
Exchange Commission stating whether or not it agrees with the above statements. A copy of such letter, dated November 15, 2016,
is filed as Exhibit 16.1 to this Current Report on Form 8-K.