Coventree Reports Fiscal 2011 Financial Results
December 16 2011 - 7:00AM
PR Newswire (Canada)
NEX Symbol: COF.H TORONTO, Dec. 16, 2011 /CNW/ - Coventree
Inc. (NEX: COF.H) ("Coventree" or the "Company") today announced
its financial results for the fiscal year ended September 30, 2011.
All amounts are reported in Canadian dollars. Coventree's net loss
for the fiscal year ended September 30, 2011 was $6.4 million,
compared to a net loss of $14.2 million for the previous fiscal
year. Total revenue for the year was $1.2 million compared to $2.1
million for the previous fiscal year. The primary source of
revenue in 2011 was interest income earned on cash and cash
equivalents. Revenue for the previous year included a $1.0
million insurance recovery under a directors and officers insurance
policy. Operating expenses for the 2011 fiscal year were $6.9
million compared to $13.9 million for the previous year. This
decrease is mainly the net result of a decrease in consulting and
legal fees related to the Ontario Securities Commission ("OSC")
proceeding of $8.5 million as the initial hearing ended in December
2010, and a provision recorded by the Company in respect of OSC
sanctions in the amount of $2.25 million. Consulting and
legal fees related to the OSC proceeding for the 2011 fiscal year
were $2.7 million, compared to $11.2 million in the previous year.
For the twelve months ended September 30, 2011, there was a $0.7
million unrealized pre-tax loss on its investment in shares of
Xceed Mortgage Corporation compared to an unrealized pre-tax loss
of $2.0 million for the twelve months ended September 30, 2010. As
at September 30, 2011, the Company had cash and cash equivalents of
$71.0 million, or approximately $4.68 per share. As at that
date, the Company's book value per share was also approximately
$4.68 per share. The Company's Management Discussion and Analysis
and audited consolidated financial statements for the fiscal year
ended September 30, 2011 will be available on 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. 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. 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 11 of the Company's
Management Discussion and Analysis for the fiscal year ended
September 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; and 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. Coventree Inc. CONTACT: Craig Armitage, The Equicom Group
Inc.Tel: (416) 815-0700 x278Email:
carmitage@equicomgroup.com-or-Ani Hotoyan-Joly, Coventree Inc.Tel:
(416) 572-2721Email: ani@coventree.ca
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