Press release from CNW Group
Seprotech Files Restated Interim Financial Statements.
Friday, March 25, 2011
Seprotech Files Restated Interim Financial Statements.12:14 EDT Friday, March 25, 2011OTTAWA, March 25 /CNW/ - Seprotech Systems Incorporated (TSXV: SET; "Seprotech" or the "Company") advises that it has filed with SEDAR restated interim financial statements and accompanying Management Discussion & Analysis together with related CEO and CFO certifications for the quarterly periods ending November 30, 2009, February 28, 2010 and May 31, 2010 respectively. The restatements were necessary due to a previously disclosed and now resolved over-billing issue between the Company and its client, the Department of National Defence ("DND"). The final amount of the over-billing as agreed between the parties is $315,584 and as previously announced the matter is being rectified by way of credits against actual work currently in process. In this regard, $150,000 has already been paid to DND, with the balance expected to be repaid in full by April 30, 2011.In addition to the overstatement of previously reported revenues in the Company's unaudited consolidated interim financial statements, the internal review and discussions with DND have also resulted in a delay in filing the Company's Audited Annual Financial Statements for the fiscal year ended August 31, 2010, as well as the related MD&A and CEO and CFO certifications. The Company has also reported that for these reasons 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 Company is now working with its auditors to complete the Annual Audited Financial Statements and related filings for the fiscal year ended August 31, 2010 and to complete the interim financial statements for the quarter ended November 30, 2010. The Company is taking steps to bring all filings up to date by April 30, 2011.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.For further information: Mr. Matthew Anderson, Investor Relations Tel: (613) 523-1641 Fax: (613) 731-0851