Fareport Capital Inc.

Fareport Capital Inc.

December 01, 2006 17:00 ET

Fareport Capital Inc. Announces Cancellation of Proposed Financing and Debt Restructuring and Delay in Filing of Audited Financial Statements

TORONTO, ONTARIO--(CCNMatthews - Dec. 1, 2006) - Fareport Capital Inc. (TSX VENTURE:CAB) Fareport Capital Inc. ("Fareport" or the "Company") wishes to provide an update with regards to its compliance with Ontario Securities Commission ("OSC") Policy 57-603.

Fareport reports that the proposed financing and debt restructuring discussed in its news releases dated October 24, 2006 and November 17, 2006 has been cancelled, as BG Capital Management Corp. has decided not to proceed. Accordingly, the previously announced conversion of substantially all of the Company's current debt obligations, the consolidation of the Company's issued and outstanding shares, the creation of a new class of preference shares, the private placement financing of its common shares, and the shareholders' meeting required to approve various aspects of the proposed financing and debt restructuring have also been cancelled. Fareport is, however, hopeful that a new financing arrangement with potential investors can be arranged in the near term.

Fareport reports that the audit of its financial statements for the years ended July 31, 2006 and for July 31, 2005 has been completed and financial statements and related Management Discussion and Analysis will be filed on SEDAR on Monday December 4th, 2006.

Regarding the previously announced agreement to settle the civil claim against Fareport's former management, advisors and certain investors, the revised settlement agreement will be completed pending closing of a new financing arrangement.

The temporary management and insider cease trade order (the "MCTO") imposed pursuant to OSC Policy 57-603 continues to be in effect. The MCTO prohibits present and certain past directors, officers and insiders of Fareport from trading in securities of Fareport.

Fareport will continue to provide updates on these and related matters in accordance with OSC Policy 57-603.

Fareport cannot guarantee that forward-looking statements contained in this news release will materialize. Nor is it possible for Fareport to commit itself to updating information about risks and other factors pertaining to its business that might appear in this or any other public disclosure documents.

Neither the TSX Venture Exchange, nor any other Regulatory Authority has approved or disapproved of the contents of this news release.

Contact Information

  • Fareport Capital Inc.
    Mr. Lou Elmaleh
    Chairman and Chief Executive Officer
    (416) 750-1167 Ext. 400