SEPROTECH ANNOUNCES OVERSTATEMENT OF REVENUES
30 December 2010 - 6:42AM
PR Newswire (Canada)
OTTAWA, Dec. 29 /CNW/ -- OTTAWA, Dec. 29 /CNW/ - Seprotech Systems
Incorporated (TSX-V: SET; "Seprotech" or the "Company") announces
that preliminary investigations by management and the audit
committee of the Company indicate that the Company's revenues as
reported in its financial statements for the quarters ended
November 30, 2009, February 28, 2010 and May 31, 2010, and for the
year ended August 31, 2009, have been overstated, by an as yet
undetermined, material amount. The Company believes that its
overstatement of revenue has resulted from over-billing to a
significant customer of the Company. The Company's audit committee
is currently working with management and the Company's auditors to
confirm the extent of such overstatement, and the impact of such
overstatement on the Company's balance sheet, statements of
operations and deficit and comprehensive loss, and statements of
cash flows for the three-month periods ended November 30, 2009,
February 28, 2010, May 31, 2010 and possibly for the year ended
August 31, 2009. The Company announced on December 17, 2010 that it
will not be able to file its audited financial statements for the
year ended August 31, 2010 and related MD&A and CEO and CFO
certificates by December 29, 2010 as required under securities
laws. Due to the potential for restatement, the Company
cautions that its previously filed financial statements should not
be relied upon until the Company can confirm their accuracy or
restated financials are filed. As additional information becomes
available, updated press releases will be issued. As has been
previously reported, the Company has a significant working capital
deficit and, accordingly, is considering sources of additional
financing which may be available to it. The Company is not
currently in compliance with financial covenant ratios in its
secured loan agreement, and depending upon the extent of final
determination of the revenue discrepancy, could be in a materially
more adverse financial condition with respect to the
non-compliance. About Seprotech Seprotech is a provider of
pre-engineered water and wastewater treatment plants to the land
development, resource sector and military market place, including
CrystalBlueâ„¢ membrane-based water recycling systems and the
ROTORDISK® wastewater treatment systems. Neither TSX Venture
Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release. The
TSX Venture Exchange has neither approved nor disapproved of the
information contained herein. Some of the statements in this press
release, including those relating to the Company's strategies and
other statements that are predictive in nature, that depend upon or
refer to future events or conditions, or that include words such as
"expects", "anticipates", "intends", "plans", "believes",
"estimates" or similar expressions, are forward-looking statements
within the meaning of securities laws. Forward-looking statements
include, without limitation, the information concerning possible or
assumed future results of operations of the Company. These
statements are not historical facts but instead represent only the
Company's expectations, estimates and projections regarding future
events. The Company does not undertake any obligation to update or
release any revisions to these forward-looking statements to
reflect events or circumstances after the date of this presentation
or to reflect the occurrence of unanticipated events, except as
required by law. To view this news release in HTML formatting,
please use the following URL:
http://www.newswire.ca/en/releases/archive/December2010/29/c8036.html
pMr. Matthew Anderson Investor Relationsbr/ Tel: (613) 523-1641br/
Fax: (613) 731-0851/p
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