OTTAWA, Feb. 23 /CNW/ - Seprotech Systems Incorporated (TSX-V: SET)
("Seprotech" or the "Company") is issuing this press release as a
default status 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 subsequent press releases and related material change reports
issued and filed between December 29, 2010 and February 9, 2011, the
Company provided updates on the status of the Annual Financial
Statements and the Annual Required Filings, and also 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 possibly for the year ended August
31, 2009, in an undetermined material amount. In its press release
dated January 26, 2011, the Company also reported that it would not be
able to file its interim financial statements for the quarter ended
November 30, 2010, and the related MD&A and CEO and CFO certifications,
by January 31, 2011 as required under securities laws.
The following is an update of material changes to the information set
out in the Default Notice and the bi-weekly Default Status Reports.
As previously reported, the Company had over-billed its customer, the
Department of National Defence, Canada (the "DND") an amount not
expected to exceed $300,000 under its contract with the Company.
Arrangements have been made to repay such an amount by way of credits
against actual work currently in process. One minor aspect of the
materials provided to DND continues to be under review with an early
response expected. However, until the precise amount of the overbilling
is confirmed by DND, and accepted by the Company's auditors, the
Company is not in a position to finalize quantification and/or
allocation of the over-billing 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 as well as its first quarter 2011 filings. Finalization of this
process is expected to further delay the filing of the Annual Required
Filings until April 30, 2011, and the first quarter 2011 filings to May
31, 2011. In the event of any significant further delay in the response
from DND, completion of outstanding filings could be further delayed.
The Company confirms that:
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;
there has not been any other anticipated or specified default by the
Company under NP 12- 203; and
there is no other material information concerning the affairs of the
Company that has not been generally disclosed.
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 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 Seprotech Systems Incorporated
For further information:
Mr. Matthew Anderson, Investor Relations
Tel: (613) 523-1641
Fax: (613) 731-0851