Coventree Reports Third Quarter 2011 Financial Results
July 26 2011 - 10:48AM
PR Newswire (Canada)
TORONTO, July 26, 2011 /CNW/ -- NEX Symbol: COF.H TORONTO,
July 26, 2011 /CNW/ - Coventree Inc. (NEX: COF.H) ("Coventree" or
the "Company") today announced its financial results for the three
and nine months ended June 30, 2011. All amounts are reported in
Canadian dollars. Coventree's net loss for the three and nine
months ended June 30, 2011 was $0.7 million and $4.0 million,
respectively, compared to a net loss of $7.8 million and $11.5
million, respectively, in the same periods in 2010. Total revenue
for the three and nine months ended June 30, 2011 was $0.3 million
and $0.9 million respectively, compared to $1.3 million and $1.8
million, respectively, for the same periods in 2010. During
the third quarter of 2010, the Company recorded a $1.0 million
insurance recovery under the Company's directors and officers
liability insurance policy with Great American Insurance
Company. The Company's primary source of revenue during the
three and nine months ended June 30, 2011 was interest income
earned on cash and cash equivalents held by the company. Operating
expenses for the three and nine months ended June 30, 2011 were
$0.5 million and $4.2 million, respectively, compared to $7.1
million and $11.4 million, respectively, for the same periods in
the previous year. This decrease of $6.6 million and $7.2 million,
respectively, 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 nine months ended June 30, 2011 were
nil and $2.7 million, respectively, compared to $6.3 million and
$9.2 million, respectively, in the previous year. For the three and
nine months ended June 30, 2011, there was a $0.4 million and $0.7
million unrealized pre-tax loss, respectively, on the Company's
investment in shares of Xceed Mortgage Corporation compared to an
unrealized pre-tax loss of $1.8 million and $1.5 million,
respectively, for the three and nine months ended June 30, 2010.
The Company's Management Discussion and Analysis and unaudited
consolidated financial statements for the three and nine months
ended June 30, 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 or what
that decision will be. 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 nine months
ended June 30, 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. 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. To
view this news release in HTML formatting, please use the following
URL:
http://www.newswire.ca/en/releases/archive/July2011/26/c7555.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="mailto:ani@coventree.ca"ani@coventree.ca/a /p
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