Xianburg Data Systems Canada Corporation

April 25, 2011 13:33 ET

Xianburg Data Systems Canada Corporation: Default Announcement Pursuant to National Policy 12-203 and Resignation of Director and Officer

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 25, 2011) - Xianburg Data Systems Canada Corporation (the "Issuer") (TSX VENTURE:XDS) today announced that it will not be in a position to file its audited annual consolidated financial statements (the "Statements"), management's discussion and analysis and related certifications for the fiscal year ended December 31, 2010 (the "Required Filings") on or before May 2, 2011, as required, as a result of unanticipated delays associated with the audit of its operating entity Xianburg International Data Group Co., Ltd. required to in order to prepare the Issuer's first set of audited financial statements since it completed its qualifying transaction in late November, 2010.

Accordingly, the Issuer has requested the issuance of a management cease trade order under the provisions of National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-203") so as to permit the continued trading in the Issuer's Common Shares by persons other than insiders and employees of the Issuer. The Issuer is working closely with its auditors, Thompson Penner & Lo LLP, and the Issuer's Board of Directors have, as a result of difficulties encountered while conducting the audit, also resolved to retain the services of one of the recognized international accounting firms to assist the existing auditor with completing the audit. The Issuer expects to be able to have the audit of the Statements completed, and the Required Filings made, by end of June, 2011.

The Issuer confirms that it intends to satisfy the provisions of section 4.4 of NP 12-203 and issue bi-weekly default status reports for so long as the Issuer remains in default of the requirement to make the Required Filings containing the following information:

a) any material changes to the information in this default announcement or subsequent default status reports, including a description of all actions taken to remedy the default and the status of any investigations into any events which may have contributed to the default;

b) particulars of any failure by the Issuer to fulfill its stated intentions with respect to satisfying the provisions of the alternative information guidelines;

c) information regarding any specified default subsequent to the default which is the subject of the default announcement; and

d) any other material information concerning the affairs of the Issuer not previously disclosed.

The Issuer intends to issue the first default status report on May 16, 2011. The Issuer is not subject to any insolvency proceedings nor is there in other material information concerning the affairs of the Issuer that has not been generally disclosed.

The Issuer also announces that Sheng (Sam) Wang has resigned as a director and Chair of the Issuer's Audit Committee on April 22, 2011 and that George Dorin has resigned as Chief Financial Officer of the Issuer on April 24, 2011. The Issuer thanks Mr. Wang and Mr. Dorin for their contributions. The Issuer's Board of Directors have resolved to appoint all of the remaining members of its Board of Directors to the Audit Committee, such that the Audit Committee is now comprised of Kabir Jivraj, Ping Huang, Omar Ladak, Jingping Dong and Song Qiao, with Mr. Ladak serving as Chair of the Audit Committee.

About Xianburg Data Systems Canada Corporation

Xianburg Data Systems Canada Corporation (TSX VENTURE:XDS) is an IT products and services firm with offices in Xi'an and Beijing. The Company is recognized as a leader in China in providing mass data storage and disaster recovery IT solutions. Xianburg International Data Group Co., Ltd. ("XID") was founded in 1994 by Jingping Dong, based on his experience in leading large‐scale data archiving projects. XID is recognized as a leading IT provider to the Chinese government and to corporate clients, and has received ISO 9001 certification for its Quality Management practices. XID has more than 120 staff with affiliates in China, Germany, and Canada. Staff includes a high proportion of IT specialists with advanced degrees. The Company, through its wholly‐owned subsidiary, Xianburg Data Systems (Canada) Inc., governs and administers the operating entity XID, a Chinese based operating company, and will earn substantially all of its income from XID. XID's core business is data entry with a specialty of converting paper documents to electronic format ("digitization") and it also manufactures high‐performance, high capacity storage systems for the archiving and publication of such documents.

This press release includes certain "forwardlooking information" within the meaning of the Canadian securities laws, particularly with respect to the anticipating timing of the Required Filings. The words "expects" and other words and expressions which may be predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking information. Reliance should not be placed on forward-looking information because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Issuer to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking information. Factors that could cause actual results of the Issuer's filing of the Required Filings to differ materially from those set forth in the forward-looking information include unforeseen administrative, legal, or transactional issues and other risks detailed from time to time in the documents filed by the Issuer with the securities regulators in Canada. Other than as required by law, the Issuer undertakes no obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Xianburg Data Systems Canada Corporation
    Farhan Rhemtulla
    Director of Investor Relations