SPARTA GROUP (:SAY) Sparta Updates Status of Annual Financial Filings Following MCTO

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02/03/2022 03:50

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TORONTO, ON / ACCESSWIRE / March 1, 2022 / Sparta Group (TSXV:SAY) (the "Corporation", the "Company", "Sparta Group", "Sparta Capital", "SAY.V" or "Sparta") is announcing that further to its January 28, 2022, news release ("Default Acceptance") it is seeking a further extension to file its annual financial statements for the year ended September 30th, 2021.

The Company originally indicated it would work towards a new deadline of March 1, 2022; However, unforeseen staffing issues experienced by the new accounting audit services firm employed by Sparta means the financial statements won't be complete for another 10-14 days.

"This is unchartered territory for us. COVID-19 among senior Sparta managers meant we were unable to complete the preparation work for the audit and so we put measures in place to ensure that our management would stay safe to complete the necessary audit prep work to meet the new deadline. However, we nor the auditors considered that other staffing issues might be a problem for them. As it turns out, we were on course to meet the new deadline and then we were informed that the auditor had a sudden staffing issue that slowed down their work towards the deadline," said Sparta President, John O'Bireck.

While the service industry has been hit hard by staffing shortages due to COVID, according to the Canadian Federation of Independent Business all types of businesses, small and large have been impacted by sudden staff shortages due to illness, specifically COVID-19.

In the original "Default Announcement" dated January 27, 2022, Sparta reported that it had completed an application seeking an order for an MCTO from the Alberta Securities Commission (ASC) because the Company was unable to file its annual financial statements for the year ended September 30, 2021, including the related management's discussion and analysis and certifications from the CEO and CFO (the "Annual Filings") in time to meet the January 28, 2022, filing deadline. On January 28th, 2022, the application was accepted by the ASC.

The delay in filing was related to senior management involved in audit preparation work contracting COVID during the holiday season. The MCTO restricts all trading in securities of the Company by the Chief Executive Officer and Chief Financial Officer of the Company until the management cease trade order is no longer in effect; however, regular trading by current and future investors (those outside the Company), continues as normal. The MCTO will be in effect until the Annual Filings are filed. Sparta is asking for an extension on the filing deadline so they can file on or before April 1, 2022.

Until the Annual Filings are filed, the Company intends to continue to follow 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.

While the company is seeking an extension to file its annual financial statements for the year ended September 30th, 2021, they will be filing their unaudited consolidated interim financial statements for the three months ended December 31, 2021 and 2020 by the required March 1, 2022 filing deadline.

About Sparta

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.

Sparta is a publicly traded company listed on the TSX Venture Exchange Inc. under the symbol "SAY" (TSX.V:SAY). Additional information is available at www.spartagroup.ca or on SEDAR at www.sedar.com.

For more information contact:

John O'Bireck, President & CTO
Email: jobireck@spartagroup.ca
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

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