Sparta Updates Delay in Filing Annual Financial Statements

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TORONTO, ON / ACCESSWIRE / April 9, 2024 / Sparta Group (TSXV:SAY) (the "Corporation", the "Company", "Sparta Group", "Sparta Capital", "SAY.V" or "Sparta") has confirmed that it has experienced a further delay with filing its annual financial statements for the year ended September 30, 2023, but will file on or before April 29, 2024. This is an update to its February 8, 2024, news release ("Default Announcement"), indicating an order from the Alberta Securities Commission ("ASC") for a Management Cease Trade Order (the "MCTO") under National Policy 12-203, Management Cease Trade Orders.

The company announced in the Default Announcement, that the order for a MCTO from the ASC was required because the Company was unable to file its annual financial statements for the year ended September 30, 2023, including the related management's discussion and analysis (MD&A) and certifications from the CEO and CFO (the "Annual Filings") in time to meet the January 29, 2024, filing deadline. The initial delay in filing the Annual Filings was primarily related to the unexpected and sudden passing of a former director and key officer, John O'Bireck, and the transition of day-to-day operations to a new management team. Mr. O'Bireck was responsible for all the operations of the Issuer, including liaising with the auditor. A further extension was required to allow the auditor to complete a final review before the Annual Filings are submitted. The auditors are about to perform their quality control review, which will run concurrently with the audit committee board review and communication. To accommodate the process, the filing date of the Annual Filings has been extended to on or before April 29, 2024.

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securities of the Company by the Chief Executive Officer and Chief Financial Officer of the Company until the MCTO is no longer in effect, regular trading by current and future investors continues as normal. The MCTO will be in effect until two full business days following the receipt of the principal regulator that all filings the issuer was required to make have been filed.

Sparta management and staff continue to move forward with broadening the customer base in the Company's Environment division, specifically within the electronic waste recycling operations, as well as working on its TruckSuite operations and ARHealth, which leverages AI and AR in healthcare.