Sparta Reports on Delay in Filing Annual Financial Statements

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TORONTO, ON / ACCESSWIRE / February 2, 2023 / Sparta Group (TSX.V:SAY) (the "Corporation" the "Company", "Sparta Group", "Sparta Capital", "SAY.V" or "Sparta") is announcing that it has completed the filing of an application seeking a management cease trade order (the "MCTO") under National Policy 12-203, from the Alberta Securities Commission ("ASC").

Sparta has 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 delay in filing is related to staffing issues at the auditing firm.

Like many industry sectors, some audit firms are struggling to keep up with work due to a decline in qualified employees and a backlog of work left on desks due to COVID-19. According to the CPA the number of accounting graduates decreased at the height of the worldwide pandemic, and while some small and medium sized accounting firms have had to turn to non-accounting graduates to fill some positions, this is not something auditors like to do since the audit process is a special type of accounting that requires considerable experience. Sparta expects to file the Annual Filings on or before February 28, 2023.

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securities of the Company by the Chief Executive Officer and Chief Financial Officer of the Company until the MCTO is no longer in effect, regular trading by current and future investors outside the Company, continues as normal.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 Annuals 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.