Sparta Updates Delay in Filing Annual Financial Statements

TORONTO, ON / ACCESSWIRE / February 24, 2023 / Sparta Group (TSXV:SAY) (the "Corporation", the "Company", "Sparta Group", "Sparta Capital", "SAY.V" or "Sparta") has announced that it is several steps closer to filing its annual financial statements in accordance with the new filing deadline of February 28, 2023.

Shortly after realizing the audit would not be complete to meet the January 30, 2023, filing deadline, Sparta management completed the filing of an application seeking a cease trade order (the "MCTO) under National Policy 12-203, from the Alberta Securities Commission ("ASC"). At that time, the Company indicated the delay in filing is related to staffing issues at the auditing firm.

Because of a decline in qualified employees and a backlog of work due to the COVID-19 pandemic, many industry sectors, including auditors, have been racing against the clock to finish work and meet multiple deadlines. The audit process is a specific type of accounting that requires considerable experience and currently this sector is having difficulty attracting and retaining workers. Sparta expects to file the Annual Filings on or before February 28, 2023 and further, in accordance with the standard quarterly filing policies, the December 31, 2022 interim quarterly filings will be published on SEDAR on or before March 1, 2023.

The MCTO restricts all trading in securities of the Company by the Chief Executive Officer and Chief Financial Officer of the Company until the MCTO is lifted. However, regular trading by current and future investors continues as usual. The MCTO is in effect until the Annuals Filings are filed.

Until the Annual Filings are filed, the Company intends to satisfy the provisions of the Alternative Information Guidelines set out in National Policy 12-203 - Management Cease Trade Orders.

Other than what has been disclosed in previous news releases, the Company reports that there have been no material business developments since the filing of the Company's latest interim financial report. The Company also confirms that there are no insolvency proceedings to which it is subject. The Company intends to file with the CSA regulators throughout the period in which it is in default, the same information it provides to its creditors when in the same manner as it would file a material change report under part 7 of NationalInstrument 51-102 Continuous Disclosure Obligations.

About Sparta

Sparta Group (a.k.a. Sparta Capital Ltd.) is a company focused on advanced technology designed to improve the health of the planet, the health of businesses, and the health of humankind. Sparta owns or holds a controlling interest in a network of independent businesses that supply energy saving technologies designed to reduce energy inefficiencies, achieve reduced emissions, and increase operating efficiencies in various industries. At the same time, the company also diverts waste from landfill, transforming it into something of value. While it began as an environmental technology company, Sparta expanded its technological expertise to address the growing demand for healthier workplaces and healthy employees. Its strong Technical Advisory Board reflects Sparta's dedication to advancing technologies that incorporate the latest in high-tech, including Artificial Intelligence (AI), to solve some of the world's pressing problems, including climate change, viral outbreaks, and mounting waste. The company is now structured into three divisions: Environment, Innovation, and Energy. These divisions better categorize the growing list of products and services offered by the Company.

Sparta is a publicly traded company listed on the TSX Venture Exchange Inc. under the symbol "SAY" (TSXV:SAY). Additional information is available at www.spartagroup.ca or on SEDAR at www.sedar.com.

For more information contact:
John O'Bireck, President & CTO
Email : jobireck@spartagroup.ca

This above may contain "forward-looking information" within the meaning of applicable securities laws. When used in this address, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. Although the Corporation believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, readers are cautioned to not place undue reliance on forward-looking information because the Corporation can give no assurance that they will prove to be correct. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date of publication of this information and the Corporation undertakes no obligation to update such forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Furthermore, the Corporation undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Corporation. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

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).

SOURCE: Sparta Group