Fareport Capital Inc.

Fareport Capital Inc.

January 17, 2006 17:00 ET

Fareport Capital Inc. Update-Delay in Release of Restated Annual and Quarterly Financial Statements

TORONTO, ONTARIO--(CCNMatthews - Jan. 17, 2006) - Fareport Capital Inc. (TSX VENTURE:CAB) -

Fareport Capital Inc. ("Fareport" or the "Company") wishes to update its shareholders and other stakeholders in compliance with its obligations pursuant to Ontario Securities Commission ("OSC") Policy 57-603.

The Company reports that the restatement of its financial results for the fiscal years ended July 31, 2004 and July 31, 2005 is still in progress. However, the completion of the restatement and related audit will be delayed until mid-February 2006, rather than mid-January 2006, as previously stated. The delay is due to the large volume and complexity of the transactions being reviewed as part of the restatement process.

In addition, the delay in the completion of the restatement and audit of the 2004 and 2005 financial statements has also resulted in a delay in generating financial statements for the three month period ended October 31, 2005. The October 31, 2005 quarterly financial statements were due to have been filed by December 30, 2005, however, their release has been delayed until mid-March 2006, at the earliest. Following the dissemination of the fiscal 2005 results, Fareport will proceed with generating financial results for the first quarter of 2006.

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.

With respect to the previously announced agreement to settle the civil claim against Fareport's former management, advisors and certain investors, there are no further developments to report at this time. The agreement remains subject to regulatory approval.

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

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

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