This news release contains forward-looking statements. Reference should
be made to "Forward-looking Statements" at the end of this news release.
TORONTO, March 25 /CNW/ - Atlantis Systems Corp. (TSX: AIQ), a globally
recognized training integrator in the military, commercial aviation and energy
markets, today announced that it will not be able to meet the regulatory
filing deadline of March 31, 2008 for filing with the securities regulatory
authorities in Ontario and Quebec its annual financial statements,
management's discussion and analysis and annual information form for the
fiscal year ended December 31, 2007 and the related certifications (the
As previously announced, as at September 30, 2007, Atlantis was in breach
of certain financial covenants under its credit facility with its bank.
Atlantis has not received a waiver for the breach of these covenants, which
constitutes an event of default under the credit facility, with the bank
having the right to demand repayment of the term loan under the credit
facility. The reason for the delay in the filing of the Annual Filings is that
Atlantis is seeking to refinance its current bank credit facility with a new
lender. The new lender is currently conducting its due diligence on Atlantis.
If the new lender determines to proceed with the financing on terms acceptable
to both Atlantis and its bank, such financing should be completed no later
than April 24, 2008. If the new lender determines not to proceed with the
financing and the bank demands repayment of its term loan, Atlantis will have
to assess its financial position as at December 31, 2007 on the basis that it
will not be able to meet the "going concern" test for the following 12-month
period. There can be no assurance that the financing with the new lender or
any other lender will be completed.
In accordance with the CSA Notice 57-301, Atlantis has filed an
application with its principal regulator, the Ontario Securities Commission,
requesting that Atlantis be subject to a "management" cease trade order,
prohibiting its directors, officers and other insiders from trading Atlantis'
securities until the Annual Filings have been filed, rather than an "issuer"
cease trade order. Assuming a "management" cease trade order is granted,
Atlantis' shares will continue to trade on the Toronto Stock Exchange and
persons who are not directors, officers or other insiders of Atlantis will
continue to be able to trade in Atlantis' shares. As required by
CSA Notice 57-301, Atlantis will provide bi-weekly updates on the status of
the failure to file its Annual Filings until they have been filed. An issuer
cease trade order could be issued if the Annual Filings are not filed before
May 31, 2008. An issuer cease trade order may be imposed sooner if Atlantis
fails to provide bi-weekly updates.
About Atlantis Systems Corp.
Headquartered near Toronto, Canada, Atlantis is a globally recognized
training integrator for customers in the military, commercial aviation sectors
and energy markets. Atlantis combines desktop and full-flight simulation,
knowledge management, learning management systems, flight training devices and
multimedia e-learning to provide integrated flight training and aircraft
maintenance training to a global list of customers. For more than 29 years,
Atlantis has drawn on its extensive engineering background and proprietary
technology to offer cost efficient, state of the art alternatives to real-life
conditions and situations. Atlantis is registered under a number of quality
management programs including ISO 9001:2000, AS 9100:2004, CSA-Z299.1-1985,
Boeing BQMS D6-82479 and Rockwell Collins RC-9000, among others. To learn
more, please visit the Company's web site at www.atlantissi.com.
Certain statements in this release are considered "forward-looking".
These forward-looking statements are based on current expectations and various
estimates, factors and assumptions and involve known and unknown risks,
uncertainties and other factors. The material factors and assumptions that
were applied in making the forward-looking statements in this release include
but are not limited to assumptions regarding: the closing of a financing on
terms acceptable to Atlantis and its bank within the required time frame; and
that applicable securities regulatory authorities will grant the requested
"management" cease trade order and not issue an "issuer" cease trade order.
Material factors that could cause Atlantis' actual results to differ
materially from the forward-looking statements in this release include risks
and uncertainties relating to: the bank's position on financing terms and
conditions with a new lender and whether or not the bank may demand repayment
of the term loan; Atlantis' ability to continue as a "going concern"; and
applicable securities regulatory authorities deciding to issue an "issuer"
cease trade order. Atlantis cannot provide any assurance that the predictions
of forward-looking statements will materialize. Atlantis assumes no obligation
to update or revise any forward-looking statement, whether as a result of new
information, future events or any other reason, except as required by
applicable law. Additional information regarding risks and uncertainties that
could affect Atlantis' business is contained in the Business Risk Factors
section of Atlantis's Annual MD&A and the Description of the Business - Risk
Factors section in Atlantis' Annual Information Form, both of which are
available on SEDAR at www.sedar.com.
For further information:
For further information: George Chiarucci, Chief Financial Officer, Tel:
(905) 792-1981, Email: email@example.com; Craig Armitage, The Equicom
Group, Tel: (416) 815-0700 x278, Email: firstname.lastname@example.org