Coventree Reports Fiscal 2010 Financial Results
November 24 2010 - 1:06PM
PR Newswire (Canada)
TORONTO, Nov. 24 /CNW/ -- NEX Symbol: COF.H TORONTO, Nov. 24 /CNW/
- Coventree Inc. (NEX: COF.H) ("Coventree" or the "Company") today
announced its financial results for the fiscal year ended September
30, 2010. All amounts are reported in Canadian dollars. Financial
Highlights Coventree's net loss for the fiscal year ended September
30, 2010 was $14.2 million, compared to net income of $0.7 million
for the previous fiscal year. Total revenue for the year decreased
by $11.5 million compared to the previous year. The only
source of revenue in 2010 is interest income from investments and,
in the third quarter, a $1 million recovery under a directors and
officers' insurance policy. Operating expenses for the 2010 fiscal
year increased by $0.6 million compared to the previous year.
The net increase of $0.6 million is the result of, among other
things, a decrease in compensation and benefits of $5.5 million as
there are fewer employees, a decrease in administration expenses of
$1.3 million as there are less expenses related to the
administration of the Company, and an increase in consulting and
legal fees related to the Ontario Securities Commission ("OSC")
hearing of $7.4 million as the Company prepared for the defence of
and attended the OSC hearing during the fiscal year.
Consulting and legal fees related to the OSC hearing for the 2010
fiscal year were $11.2 million, compared to $3.8 million in the
previous year. For the twelve months ended September 30, 2010,
there was a $2.0 million unrealized pre-tax loss on its investment
in shares of Xceed Mortgage Corporation compared to an unrealized
pre-tax gain of $1.8 million for the twelve months ended September
30, 2009. The Company's Management Discussion and Analysis and
audited consolidated financial statements for the fiscal year ended
September 30, 2010 will be available under the "Coventree Owners"
section of the Company's website at www.coventree.ca and on SEDAR
at www.sedar.com. Outlook Coventree is continuing to proceed with
its previously announced plans to wind down the Company and its
operations. In that regard, at the Company's annual and special
meeting of shareholders on June 30, 2010, shareholders approved a
special resolution authorizing the winding up of the Company and
the distribution of its remaining assets, if any, to
shareholders. The winding up of the Company will commence and
become effective at a time to be determined by the Company's board
of directors. The board intends to set the effective date as
promptly as practicable following the final determination of the
OSC hearing described above. However, the timing of any
formal winding up of the Company and the amount and timing of any
distribution of funds to shareholders under such a winding up
cannot be determined at this time. A number of factors, some of
which are beyond the Company's control, could affect the timing of,
or the amount of funds available for distribution upon, a formal
winding up of the Company, including the OSC hearing described
above. The OSC hearing is the principal matter to be
resolved prior to the implementation by the Company of its winding
up and distribution of its remaining assets. In that regard,
the OSC hearing has continued for a total of 41 hearing days since
commencing on May 12, 2010, and is scheduled to resume on December
1, 2010. The Company expects that the hearing will conclude
in mid-December 2010; however, there can be no assurance as to when
the OSC will issue its decision in the matter. Forward-Looking
Statements This press release includes certain forward-looking
statements relating to the Company's expectations to wind down its
operations and to implement a formal winding up of the Company and
as to when the OSC hearing will conclude. These statements can be
identified by the expressions "will", "expects" and "intends".
These forward-looking statements are not historical facts but
reflect Coventree's current expectations regarding future events
based on information currently available to Coventree. These
forward-looking statements are subject to a number of known and
unknown risks, uncertainties and assumptions which may be
substantial. Many factors could cause actual results or events to
differ materially from current expectations that may be expressed
or implied by such forward-looking statements, including, without
limitation, the various matters discussed under "Risks and
Uncertainties" contained on pages 12 and 13 of the Company's
Management Discussion and Analysis for the fiscal year ended
September 30, 2010 which is available under the Company's profile
on SEDAR at www.sedar.com. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking statements prove incorrect, the Company may not be
able to wind down its operations or implement a formal winding up
of the Company in the near future or at all; the amount of funds
available to be distributed to shareholders pursuant to such a
winding up could be significantly reduced and/or the timing of the
distribution of such funds could be significantly delayed; and the
OSC hearing could continue well beyond mid-December 2010. These
factors should be considered carefully and prospective investors
should not place undue reliance on the forward-looking statements.
These forward-looking statements are made as of the date of this
press release and Coventree does not intend, and does not assume
any obligation, to update or revise these forward-looking
statements, except as required by law. This press release is
intended for distribution in Canada only. Neither TSX Venture
Exchange nor it 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.
%SEDAR: 00024386E pCraig Armitage, The Equicom Group Inc.br/ Tel:
(416) 815-0700 x278br/ Email: a
href="mailto:carmitage@equicomgroup.com"carmitage@equicomgroup.com/abr/
-or-br/ Ani Hotoyan-Joly, Coventree Inc.br/ Tel: (416) 572-2721br/
Email: a href="mailto:ani@coventree.ca"ani@coventree.ca/a/p
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