Brainhunter Inc.

Brainhunter Inc.

December 29, 2008 17:28 ET

Brainhunter Delays Filing of Financial Statements

Audit delayed due to delays in clarifying accounting treatment of Goodwill

TORONTO, ONTARIO--(Marketwire - Dec. 29, 2008) -


Brainhunter Inc. ("Brainhunter" or the "Company") (TSX:BH) announced today that it will delay the filing of its audited financial statements, CEO and CFO certifications, management discussion and analysis ("MD&A") and annual information filing ("AIF") for the year ended September 30, 2008 beyond the filing deadline of December 29, 2008. It is now anticipated that the annual results will be filed no later than February 20, 2009.

As a result of previous acquisitions made by the Company and the impact of the current market conditions on the Company's market capitalization, discussions are ongoing between the Company and its auditor regarding the accounting treatment of the goodwill to be reported on the Company's annual financial statements. The discussions are progressing but a final resolution on the accounting treatment of the goodwill has not been achieved, which has caused a delay in the completion of the audit. The Company will also be consulting an external advisor on this matter.

In the meantime, the Company has voluntarily requested that the Ontario Securities Commission and other Canadian securities regulatory authorities issue a temporary cease trade order related to the Company's securities against certain directors, officers and insiders of the Company for so long as the annual financial statements, certifications and related MD&A and AIF are not filed. The issuance of such management cease trade order would generally not affect the ability of persons who have not been directors, officers or insiders of the Company to trade in their securities. However, the Ontario Securities Commission, in its discretion, may determine that it would be appropriate to issue a general issuer cease trade order affecting all of the Company's securities.

Until such documents are filed, the Company intends to provide information in accordance with National Policy 12-203: Cease Trade Orders for Continuous Disclosure Defaults, including the issuance of bi-weekly default status reports.


Brainhunter is an ISO 9001:2000 Certified "Technology Driven Staffing Procurement Services and Solutions" company. Brainhunter's business is focused on using the Brainhunter Human Capital Management Platform to provide fully integrated end-to-end recruiting and staffing services and solutions in the following market sectors: Information Technology, Engineering, Industrial and Health Care. These services are provided to customers throughout Canada, the United States and globally under the brand

Brainhunter's Technology Platform and Best practices strive to deliver the most cost effective and flexible recruiting and staffing solutions in the marketplace today. Brainhunter offers solutions that are modular in nature and are customizable to suit both small and large scale business processes. Brainhunter has over 2,000 clients including over 200 of North America's leading corporation's plus over 30 federal and provincial government departments. Brainhunter's Job Seeker Database currently holds over 1.2 million professional resumes and is one of the largest active databases for professional staffing in North America.

Brainhunter is a publicly traded company with a senior listing on the Toronto Stock Exchange (TSX:BH). Brainhunter deploys over 1,800 Contractors / Consultants with an internal staff of over 280 personnel. The Company has delivery capability across Canada including Toronto, Ottawa, Maritimes, Montreal, Calgary, Edmonton, Vancouver, activities in Dalian China, a BPO office in Hyderabad, India and delivery capability in select US jurisdictions and the UK.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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