Fareport Capital Inc.

Fareport Capital Inc.

March 20, 2006 17:41 ET

Fareport Capital Inc. Reports Improved Results for Fiscal 2005

TORONTO, ONTARIO--(CCNMatthews - March 20, 2006) - Fareport Capital Inc.(TSX VENTURE:CAB) today reported that the audit of its financial statements for the year ended July 31, 2005 and the restatement of the financial results for July 31, 2004 have been completed and financial statements and the related Management Discussion and Analysis have been filed on SEDAR.

During fiscal 2005, revenues rose by 15% to $8,055,190 from $7,014,318 as restated in 2004. The net loss for 2005 was reduced by 26% to $1,675,165 or $(0.04) per common share after including $730,087 in non-operating and restructuring costs. This compares to a restated net loss of $2,258,253 or $(0.09) per common share in 2004 after including $1,004,002 in non-operating and restructuring costs.

As a result of the identification of material non-operating transactions, a thorough review of operations and financial controls and a restructuring process was undertaken. The complexity and large volume of transactions being reviewed caused numerous delays in completing the 2005 audit and the restatement of the 2004 financial statements.

Furthermore, the imposition of a temporary management and insider cease trade order (the "MCTO") 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.

In addition, the Company's legal counsel is currently finalizing details relating to the previously announced agreement to settle the civil claim against Fareport's former management, advisors and certain investors. The revised agreement is expected to be finalized and executed shortly.

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

Fareport Capital currently operates the Crown Taxi and Olympic Taxi brokerages and dispatch operations in the city of Toronto. The Crown Taxi division dispatches to over 300 vehicles. In addition, through its Crown Transportation and Trax Shuttle Service divisions, the Company also offers charter transportation services.

Neither the TSX Venture Exchange, nor any other Regulatory Authority has approved or disapproved of the contents of this news release. Fareport cannot guarantee that any 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.

Contact Information

  • Fareport Capital Inc.
    Lou Elmaleh
    Chief Executive Officer
    (416)750-1167 ext. 400