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TORONTO, ON / ACCESSWIRE / February 28, 2023 / Sparta Group (TSXV:SAY) (the "Corporation", the "Company", "Sparta Group", "Sparta Capital", "SAY.V" or "Sparta") is announcing that further to its February 1, 2023, news release ("Default Acceptance") it is asking the Alberta Securities Commission ("ASC") for a further extension to file its annual financial statements for the year ended September 30th, 2022. As a result, the application seeking a management cease trade order (the "MCTO") under National Policy 12-203, will need to stay in effect.
Sparta filed an application seeking an order for a MCTO from the ASC because the Company was unable to file its annual financial statements for the year ending September 30, 2022, including the related management's discussion and analysis and certifications from the CEO and CFO (the "Annual Filings"), in time to meet the January 30, 2023, filing deadline. The Company originally indicated it would work towards a new deadline of February 28, 2023; however, staffing issues have continued to plague the accounting audit services firm engaged by Sparta. This means the Annual Filings aren't expected to be completed until March 17, 2023.
Sparta management was informed of the delay by the audit firm, as it continues to grapple with a staff shortage. Late last year, Fortune reported that declining enrollment in accounting programs could force "grassroots campaigns" in an attempt to draw newcomers to the field. Meanwhile, those who have worked in the profession for years, are leaving accounting and auditing firms in record numbers, joining a wide range of professionals re-evaluating what they want in terms of a career. Several employment surveys in countries across the world indicate that one in five workers changed jobs last year.
While the MCTO restricts all trading in securities of the Company by the Chief Executive Officer and Chief Financial Officer of the Company until the MCTO is no longer in effect, regular trading by current and future investors outside the Company, continues as normal. The MCTO will be in effect until the Annual Filings are filed.
Until the Annual Filings are filed, the Company intends to satisfy the provisions of the Alternative Information Guidelines set out in National Policy 12-203 - Management Cease Trade Orders.
The Company confirms that, other than what was disclosed in prior press releases, there have been no material business developments since the filing of the Company's latest interim financial report. The company further confirms that there are no insolvency proceeding to which it is subject and the Company intends to file with the CSA regulators throughout the period in which it is in default, the same information it provides to its creditors when the information is provided to the creditors and in the same manner as it would file a material change report under part 7 of National Instrument 51-102 Continuous Disclosure Obligations.
While the company is seeking an extension to file its annual financial statements for the year ended September 30th, 2022, they are looking to file their unaudited consolidated interim financial statements for the three months ended December 31, 2022 and 2020 by the required March 1, 2023 filing deadline.
Sparta Group (a.k.a. Sparta Capital Ltd.) is a technology-based company that owns or holds a controlling interest in a network of independent businesses that supply energy saving technologies designed to reduce energy inefficiencies, achieve reduced emissions, and increase operating efficiencies in various industries. In response to the COVID-19 crisis, Sparta has also expanded its scope to help facilitate supply of necessary materials while assisting talented inventors who are looking to introduce innovative technical solutions that will bring greater normalcy to the post COVID-19 world. Sparta's network of independent businesses provides a wide range of specialized energy capturing, converting, optimizing, and related services to the commercial sector. Sparta provides capital, technical and engineering expertise, legal support, financial and accounting knowledge, strategic planning, and other shared services to its independent businesses.
For more information contact:
John O'Bireck, President & CTO
Telephone: (905) 751-8004
This above may contain "forward-looking information" within the meaning of applicable securities laws. When used in this address, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. Although the Corporation believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, readers are cautioned to not place undue reliance on forward-looking information because the Corporation can give no assurance that they will prove to be correct. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date of publication of this information and the Corporation undertakes no obligation to update such forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Furthermore, the Corporation undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Corporation. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
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).
SOURCE: Sparta Group