Fareport Capital Inc.

Fareport Capital Inc.

November 08, 2005 16:54 ET

Fareport Capital Inc. Update

TORONTO, ONTARIO--(CCNMatthews - Nov. 8, 2005) - Fareport Capital Inc. (TSX VENTURE:CAB) -

Further to 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.

On October 21, 2005 Fareport reached an agreement to settle the Civil Claim (as well as other related litigation matters) against its former management, advisors and certain investors. Aspects of the final settlement documents are subject to regulatory approval, and will thus be formally entered and released in due course.

The Company also advises that there have been some changes to the timeline announced in our previous news releases relating to the re-statement of financial results for the fiscal years ended July 31, 2004 and July 31, 2005. The re-statement process is taking longer than originally anticipated due to the large volume of transactions that need to be reviewed. As a result, management projects that the re-statement of its historical financial statements and related audit will be completed and results will be publicly available by mid-December 2005. Paul Straatman has resigned as Controller of the Company and has been replaced by Glenn Middleton, CMA as Interim Controller.

In addition, 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.

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

Contact Information

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