Fareport Capital Inc.

Fareport Capital Inc.

October 11, 2005 17:18 ET

Fareport Capital Inc. Update

TORONTO, ONTARIO--(CCNMatthews - Oct. 11, 2005) - Fareport Capital Inc. (TSX VENTURE:CAB)

Further to the information disclosed in previous news releases and in compliance with its obligations pursuant to Ontario Securities Commission ("OSC") Policy 57-603, Fareport Capital Inc. ("Fareport" or the "Company") wishes to update its shareholders and other stakeholders concerning certain corporate governance matters, its proposed restatement of certain financial results, and the litigation relating to the matters alleged in the statement of claim issued by Fareport on July 19, 2005.

Fareport reports that there have been no further developments relating to corporate governance issues since its last meeting of the Board of Directors held on September 9, 2005.

The Company also confirms that there have been no changes to the process and timelines announced in our previous news release relating to the re-statement of financial results for the fiscal years ended July 31, 2004 and July 31, 2005. Management continues to project that the results of the restatement of its historical financial statements and related audit will be publicly available in mid-November, 2005.

The previously announced 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 including the following defendants in an ongoing lawsuit commenced by Fareport: Robert Donaldson, Nickolai Choumakevitch, Paul Pathak, Paul Vorvis and Stephen Katmarian.

In addition, Fareport has consented to put into trust on or before October 28, 2005, a sum of monies equal to the amount of interest claimed by some of the dedendants in the Civil Claim to be owing pursuant to debentures allegedly issued to them by Fareport. These monies will be held in trust until the time a further court order is issued in respect of this matter or otherwise agreed between counsel.

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

Contact Information

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