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.
Seprotech is a provider of pre-engineered water and wastewater treatment
plants to the land development, resource sector and military market
place, including CrystalBlue™ 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.
SOURCE BluMetric Environmental Inc.
For further information: For further information:
Mr. Matthew Anderson Investor Relations
Tel: (613) 523-1641
Fax: (613) 731-0851