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Versatile Systems Announces Late Filing of Annual Financial Statements and Management Cease Trade Order

SEATTLE, WASHINGTON--(Marketwired - Nov. 1, 2016) - Versatile Systems Inc. (TSX VENTURE:VV) (the "Company") announces that it did not file its annual financial statements for the fiscal year ended June 30, 2016 and the related management's discussion and analysis by the legal deadline of October 28, 2016. The Company made an application to the provincial securities commissions under National Policy 12-203 Cease Trade Orders and has received a Management Cease Trade Order (the "MCTO") in respect of the late filing. During the MCTO, the general investing public will continue to be able to trade in the Company's listed common shares, however, the Company's Chief Executive Officer, Chief Financial Officer and such other directors, officers and persons as determined by the applicable regulatory authorities, will not be able to trade the Company's shares. The Company's failure to file its audited financial statements by the prescribed deadline is due to a data corruption issue with its inventory count. The Company is working to resolve the data corruption and the Company's management, together with its audit committee will continue to cooperate with its auditors to provide the information as soon as possible.

The Company expects to file its audited financial statements for the fiscal year ended June 30, 2016 and the related management's discussion and analysis by December 2nd, 2016. Until then, the Company intends to comply with the provisions of the alternative information guidelines as set out in National Policy 12-203 for as long as it remains in default, including the issuance of bi-weekly default status reports, each of which will be issued in the form of a news release. The Company also confirms that, at the date hereof, there are no insolvency proceedings against it and no other material information concerning the affairs of the Company that has not been generally disclosed.

About Versatile

Versatile is a multi-disciplinary technology company with solutions across the mobile software and hardware landscape. The company's products are utilized by Fortune 500 retailers, as well as large and small distribution companies representing grocery, dairy, beverage and consumer packaged goods. For more information please visit www.versatile.com.

Forward-Looking Statements

This document may contain forward-looking statements relating to Versatile's operations, filing of annual financial statements for the fiscal year ended June 30, 2016 and the related management's discussion and analysis or to the environment in which it operates, which are based on Versatile's operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or are beyond Versatile's control. A number of important factors including those set forth in other public filings could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Versatile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Versatile Systems Inc.
Andrew Lynch
President
(425) 778-8577
inquiries@versatile.com
www.versatile.com



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