Seprotech updates status of previously reported delay in filing of 2010 annual financial statements and reports delay in filing
13 January 2011 - 10:12AM
PR Newswire (Canada)
OTTAWA, Jan. 12 /CNW/ -- OTTAWA, Jan. 12 /CNW/ - Seprotech Systems
Incorporated (TSX-V: SET; "Seprotech" or the "Company") is issuing
this press release as a default status report and filing its
related material change report in accordance with National Policy
12-203. In its press release on December 17, 2010, (the
"Default Notice"), the Company announced that it would not be able
to file its audited financial statements for the year ended August
31, 2010 (the "Annual Financial Statements") and its related
MD&A and CEO and CFO certificates (collectively, the "Annual
Required Filings") by December 29, 2010 as required under
securities laws. By its further press release and related material
change report issued and filed on December 29, 2010 (the "First
Default Status Report"), the Company reported a material change
relating to an overstatement of revenues as reported in its
financial statements for the quarters ended November 30, 2009,
February 28, 2010, May 31, 2010 and for the year ended August 31,
2009, in an undetermined material amount. The Company applied for,
and on January 4, 2011 received from its principal regulator, the
Ontario Securities Commission, a temporary Management Cease Trade
Order (the "MCTO") under Part 4 of National Policy 12-203. By
virtue of the MCTO, and until the required filings are complete,
neither the CEO nor the CFO is permitted, directly or indirectly,
to trade in or acquire securities of the Company for a period of 15
days from the date of MCTO or any extension of the MCTO. The
following is an update of material changes to the information set
out in the Default Notice and the First Default Status Report. As
previously reported, on December 17, 2010, the Company notified a
significant customer (the "Significant Customer") of material
billing discrepancies under its contract with the Company, and, at
the request of the Significant Customer, on December 23, 2010 the
Company provided detailed information to the Significant Customer
identifying where the billing discrepancies were believed to have
taken place. While the Company is continuing discussions with the
Significant Customer with a view to confirming the amount of the
overbilling, it has now been agreed in principle that the
over-billing will be corrected through applying a credit on future
work under the contract and it is anticipated that the credit will
be fully utilized by applying it to work currently
committed. In this regard an extension of the contract until
April 14, 2011 has today been signed by the Company and the
Significant Customer. Until the amount of the overbilling is
confirmed by the Significant Customer, and accepted by the
Company's auditors, the Company is not in a position to quantify or
allocate the overbilling to the appropriate historical fiscal
quarters thereby enabling completion of the audit of its Annual
Financial Statements and subsequent filing of its Annual Required
Filings. This process is expected to further delay the filing of
the Annual Required Filings until February 28, 2011. In addition,
the Company reports that it will not now be able to file its
interim financial statements for the quarter ended November 30,
2010 and related MD&A and CEO and CFO certificates before the
prescribed date of January 31, 2011. The Company confirms that: (i)
there has been no failure by the Company in fulfilling its stated
intentions with respect to satisfying the provisions of the
alternative information guidelines set out in NP 12-203; (ii) there
has not been any other anticipated or specified default by the
Company under NP 12-203; (iii) there is no other material
information concerning the affairs of the Company that has not been
generally disclosed; and The Company will continue to satisfy the
provisions of the alternative information guidelines under NP
12-203 by issuing bi-weekly default status reports in the form of
news releases so long as it remains in default of the filing
requirements set out above. 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/January2011/12/c2208.html
pMr. Matthew Anderson, Investor Relationsbr/ Tel: (613) 523-1641br/
Fax: (613) 731-0851/p
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