Coventree Reports Second Quarter 2011 Financial Results
April 29 2011 - 11:16AM
PR Newswire (Canada)
TORONTO, April 29 /CNW/ -- /THIS PRESS RELEASE IS INTENDED FOR
DISTRIBUTION IN CANADA ONLY./ NEX Symbol: COF.H TORONTO,
April 29 /CNW/ - Coventree Inc. (NEX: COF.H) ("Coventree" or the
"Company") today announced its financial results for the three and
six months ended March 31, 2011. All amounts are reported in
Canadian dollars. Coventree's net loss for the three and six months
ended March 31, 2011 was $0.1 million and $3.3 million,
respectively, compared to a net loss of $2.3 million and $3.7
million, respectively, in the same periods in 2010. Total revenue
for the three and six months ended March 31, 2011 was $0.3 million
and $0.6 million respectively, and was the same for the
corresponding periods in 2010. The Company's primary source
of revenue during the three and six months ended March 31, 2011 was
interest income earned on cash and cash equivalents held by the
company. Operating expenses for the three and six months ended
March 31, 2011 were $0.6 million and $3.6 million, respectively,
which represents a decrease of $2.2 million and $0.7 million,
respectively, compared to the same periods in the previous year.
This decrease is mainly the result of the decrease in legal and
consulting fees related to the OSC proceeding as the proceeding
ended in December 2010. Legal and consulting fees related to the
OSC hearing for the three and six months ended March 31, 2011 were
nil and $2.6 million, respectively, compared to $2.2 million and
$2.9 million, respectively, in the previous year. For the three and
six months ended March 31, 2011, there was a $0.3 million
unrealized pre-tax gain and $0.3 million unrealized pre-tax loss,
respectively, on the Company's investment in shares of Xceed
Mortgage Corporation compared to an unrealized pre-tax gain of $0.4
million and $0.3 million, respectively, for the three and six
months ended March 31, 2010. The Company's Management Discussion
and Analysis and unaudited consolidated financial statements for
the three and six months ended March 31, 2011 will be available
under the "Coventree Owners" section of the Company's website at
www.coventree.ca and on SEDAR at www.sedar.com. Coventree expects
to implement a formal winding up of the Company. 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 proceeding.
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, will
affect the timing of, or the amount of funds available for
distribution upon, a formal winding up of the Company, including
the timing and outcome of the decision to be issued by the OSC in
respect of the hearing described above. A final determination
of the OSC proceeding is the principal matter to be resolved prior
to the implementation by the Company of its winding up and the
distribution of its remaining assets. In that regard, the OSC
hearing ended on December 9, 2010, and the OSC reserved its
decision at that time. 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. 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 10 to 12 of the Company's Management Discussion and
Analysis for the three and six months ended March 31, 2011 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. 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.
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. To view this news release in HTML formatting, please
use the following URL:
http://www.newswire.ca/en/releases/archive/April2011/29/c8055.html
p Craig 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="http://ani@coventree.ca"ani@c/aa
href="mailto:ani@coventree.ca"oventree.ca/a /p
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