Boulder, CO – October 6, 2009 – eCrypt Technologies, Inc. (OTCBB: ECRY). The shares of the Company do not trade on any Canadian exchanges, however, the Company’s President and CEO, Brad Lever, is a resident of British Columbia, Canada, and as a result the Company became a reporting issuer in the Province of BC, Canada, on July 20, 2009. This action was taken in order to become compliant with British Columbia Securities Commission (“BCSC”) requirements to file the same continuous disclosure documents that it files with the Securities Exchange Commission (“SEC”). The Company is current with all SEC continuous disclosure requirements.
In August of this year the BCSC conducted a review of the Company’s filed registration statement, which contained Financial Statements audited by Moore and Associates (“Moore”). The BCSC notified the Company that Moore are not registered with the Canadian Public Accountability Board (“CPAB”) as required under National Instrument 52-108. As a result of this notice, the Company engaged Seale and Beers, a Public Company Accounting Oversight Board (“PCAOB”) and CPAB registered audit firm, to complete the review of it’s financial statements for the three month period ended June 30, 2009 in order to meet its filing requirements with the SEC, and the required re-audit to meet BCSC requirements.
In a consultation on October 1, 2009, it was determined that due to time constraints Seale & Beers would be unable to complete the required re-audit.
On September 1, 2009, the Company was notified by the SEC that Moore has been charged with securities fraud for issuing false audit reports that failed to comply with PCAOB Standards (Litigation Release No. 21189A). On this same day, the BCSC issued a cease trade order in respect of the Company’s shares, which is limited to the Province of British Columbia (Decision & Order ID 2009 BCSECCOM 479).
As a result of the preceding events, the Company determined that in order to maintain its commitment to present accurate information to its investment community, it was necessary to restate and re-audit all of its financial statements from inception (April 19, 2007) to date. The Company has engaged De Joya Griffith and Company, a CPAB and PCAOB registered auditing firm in good standing, to complete the required audits, and intends to apply to the BCSC for reinstatement upon filing of the statements, and prior to November 3, 2009.
Brad Lever, President and CEO of eCrypt Technologies, comments, “An integral part of our mission statement is to fulfill our responsibility to our current and future stakeholders, so it is of utmost importance to us to ensure we present accurate information to the investment community. When we learned of the litigation against Moore and Associates, we lost confidence in the information that has been released under their consent and, as a result, we resolved to take all steps that were necessary in order to regain this confidence. We’re here for the long term and are committed to maintaining integrity in the way we manage all aspects of the Company, and are assured that we are now in the right hands and are look forward to great things coming in the near future.”
For more information, investors are urged to contact eCrypt’s Investor Relations team at investors@ecryptinc.com or 1.866.241.6868.
About eCrypt Technologies
eCrypt Technologies, Inc. is an information security firm with a focus on the wireless industry. Its flagship product “eCrypt,” is a first-of-its-kind encryption software for wireless email on BlackBerry® smartphones, and is available under a perpetual license or on a pay-per-use basis. Using the strongest encryption algorithms available for the BlackBerry® smartphone OS, eCrypt software prevents unwanted access to email messages during transmission and storage on servers and PCs. Users may communicate freely with each other knowing that no one has access to the content of their emails.
eCrypt is a member of the BlackBerry® Alliance Program and has successfully obtained a Mass Market Status for its product from the U.S. Department of Commerce, Bureau of Industry and Security. This status allows eCrypt to export and re-export the software under section 742.15(B)(2) of the Export Administration Regulations, and is recognized by the Wassenaar Arrangement.
eCrypt is available for BlackBerry® Internet Service and BlackBerry® Enterprise Server customers.
For further information go to: www.eCryptinc.com, or www.YourPrivacyIsOurBusiness.com
The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited.