Business
A.O.G. Air Support Inc. - Delay in Filing/Related Party Transactions/ Extended Audit Procedures
A.O.G. Air Support Inc. - Delay in Filing/Related Party Transactions/ Extended Audit Procedures.
About this update from Transatlantic Mining Corp.
[{"type":"text","content":"\n\n\n\n\nLOWNA, BC, March 27 /CNW/ - A.O.G. Air Support Inc. (\"The Company\") has\nnot yet filed its annual financial statements for the year ended September 30,\n2005 and as a consequence the B.C. Securities Commission has issued a\nManagement Cease Trade Order against the Company's directors, officers and\ninsiders. As a result of the delay in filing the annual financial statements,\nthe Company wishes to provide a comprehensive news release setting out the\ncurrent status of the Company.\nIn addition to the delays caused by the Company's decision not to extend\nthe employment contract of the previous Chief Financial Officer, there were\nsignificant delays in filing the audited financial statements due to the\nCompany's auditors, BDO Dunwoody LLP, Chartered Accountants having to extend\ntheir audit procedures. These procedures were initiated based on allegations\nmade by the Company's previous Chief Financial Officer against David Barron,\nand Debbie Barron, directors, officers and founding shareholders of the\nCompany. BDO Dunwoody had to investigate these allegations.\nOn January 23, 2006 BDO Dunwoody reported their findings as audit\ncommittee for consideration. These findings raised concerns regarding related\nparty transactions, lack of internal controls and questions over the ownership\nof the technology related to the Company's Caravan Hot Wings project (the\n\"Caravan Project\") with Hot Wings International Inc. (\"HWI\"). The Caravan\nProject is a joint project for the development, manufacturing and marketing of\na proprietary retrofit modification for Cessna Caravan aircraft.\nIn addition to the concerns set out above, conflicts between a related\nparties and Xpress Management Inc. (\"Xpress\", one of the shareholders of HWI),\nhas limited the immediately available time and capital of the Company and has\njeopardized the ongoing development of the Caravan Project. Consequently, the\nfunding for the testing of the Caravan Project has been interrupted and the\nCompany has a shortage of working capital which creates a going concern risk.\nProgress is being made in addressing these serious concerns. With the\nexclusion and subsequent resignation of Ms. Barron from the audit committee,\nthe independent directors of the audit committee are continuing to consider\nthe matters raised by the auditors and have engaged expert...