Feronia Inc. Announces Filing of Amended and Restated Interim Financial Statements and MD&A for First Three Quarters of 2011
June 30 2012 - 11:19PM
PR Newswire (Canada)
TORONTO, July 4, 2012 /CNW/ - Feronia Inc. ("Feronia" or the
"Company") today announced that it has filed on SEDAR amended and
restated interim financial statements and management's discussion
and analysis for the first three quarters of 2011 (the "2011
Refilings"). As previously announced, as a result of the audit of
the financial statements for the year ended December 31, 2011, the
Company determined that certain IFRS-determined information in its
interim filings for each of the first three quarters of 2011 would
require adjustments to correct for IFRS-related changes in the
valuation model for the biological assets of the Company and the
reclassification of the warrants as financial liabilities. A
summary of the adjustments made in the 2011 Refilings is set forth
below: (1) Non-current biological
asset valuation As a result of the adoption of IFRS in 2011,
management was required to apply the accounting standard IAS 41,
Biological Assets (IAS 41) for each interim period from the
transition date, being January 1, 2010. Accordingly, the 2011
Refilings include adjustments to reflect the proper application of
IAS 41 and to correct for formula errors noted in the valuation
models and errors in the valuation methodology, resulting in an
elimination of gain on the biological assets of the Company, an
elimination of non-current biological assets and a corresponding
reduction in income tax expense and deferred tax liabilities.
(2) Warrant liability As a result of
the adoption of IFRS, the Company was required to record certain
non-broker warrants as financial liabilities based on the fact that
the warrants have anti-dilution clauses which did not meet the
"fixed-for-fixed" rule set out in IAS 32. Accordingly, the 2011
Refilings include adjustments to reflect the proper application of
IAS 32, resulting in the recognition of a fair value gain or loss,
as the case may be, in the warrants as part of finance costs.
(3) Arable and other adjustments In
preparing the 2011 year-end consolidated financial statements,
management noted that certain transactions were not accounted for
correctly during the interim periods, which resulted in adjustments
being made to certain line items in the interim financial
statements for the first three quarters of 2011. The adjustments in
the 2011 Refilings primarily relate to an increase in selling,
general and administrative expenses as a result of expensing
previously deferred costs relating to arable land preparation and
adjusting amortization expense. Please refer to Note 2 of the
amended and restated consolidated interim financial statements for
the first three quarters of 2011 for a detailed breakdown of the
adjustments associated with the foregoing items, available at
www.sedar.com. Executive Chairman Ravi Sood commented: "As
indicated in previous filings the Company had identified various
items, relating primarily to our transition to IFRS accounting,
that required restating. All of these restatements were non-cash
items and not related to the fundamental performance and progress
in our business. Since December 2011, we have strengthened our
finance team with the addition of two experienced professionals. We
believe that the Company is well positioned to handle the
accounting and finance requirements of the growth ahead of us."
About Feronia Inc. Feronia is a large-scale commercial farmland and
plantation operator in the Democratic Republic of Congo ("DRC").
The Company uses modern agricultural practices to operate and
develop its oil palm plantations and arable farming business
division. Feronia believes in the immense agricultural potential of
the DRC for high-quality foodstuffs and edible oils given its ideal
climate, excellent soil and highly skilled and experienced
workforce. Feronia's management team is comprised of senior
agriculturalists with extensive experience in managing both
plantations and large-scale mechanized farming operations in
emerging markets. Feronia is committed to sustainable
agriculture, environmental protection and providing support for
local communities. For more information please see www.feronia.com.
Cautionary Notes Except for statements of historical fact contained
herein, the information in this press release constitutes
"forward-looking information" within the meaning of Canadian
securities law. Such forward-looking information may be identified
by words such as "anticipates", "plans", "proposes", "estimates",
"intends", "expects", "believes", "may", "will" and include without
limitation, statements regarding proposed capital expenditure; the
Company's plan of operations and comparative advantages; plans
regarding sowing rice and replanting oil palms; improvements in
harvesting and collection; and positive trends regarding OERs.
There can be no assurance that such statements will prove to be
accurate; actual results and future events could differ materially
from such statements. Factors that could cause actual results to
differ materially include, among others: risks related to foreign
operations (including various political, economic and other risks
and uncertainties), the interpretation and implementation of the
"Loi Portant Principes Fondamentaux Relatifs A L'Agriculture" (the
DRC's agriculture law, as discussed in the Company's management's
discussion and analysis for the period ended March 31, 2012),
termination or non-renewal of concession rights or expropriation of
property rights, political instability and bureaucracy, limited
operating history, lack of profitability, lack of infrastructure in
the DRC, high inflation rates, limited availability of debt
financing in the DRC, fluctuations in currency exchange rates,
competition from other businesses, reliance on various factors
(including local labour, importation of machinery and other key
items and business relationships), the Company's reliance on two
refining factories and one major customer, lower productivity at
the Company's plantations and arable farming operations, risks
related to the agricultural industry (including adverse weather
conditions, shifting weather patterns, and crop failure due to
infestations), a shift in commodity trends and demands,
vulnerability to fluctuations in the world market, the lack of
availability of qualified management personnel and stock market
volatility. Most of these factors are outside the control of
the Company. Investors are cautioned not to put undue reliance on
forward-looking information. Except as otherwise required by
applicable securities statutes or regulation, the Company expressly
disclaims any intent or obligation to update publicly
forward-looking information, whether as a result of new
information, future events or otherwise. Neither the TSX Venture
Exchange nor its 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.
Feronia Inc. CONTACT: Ravi SoodExecutive Chairman, Feronia
Inc.(416) 907-2026Ravi.Sood@feronia.comwww.feronia.comBill DryCEO,
Feronia Inc.44 (0) 7887 525 046Bill.Dry@feronia.comwww.feronia.com
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