VANCOUVER, BC, Nov. 23, 2020 /CNW/ - Itasca Capital Ltd.
(TSXV: ICL) ("Itasca" or "Company") today filed its unaudited
interim financial statements for the nine months ended September 30, 2020 and the related management
discussion & analysis, both of which are available under
Itasca's profile on SEDAR at www.sedar.com. All amounts are in
Canadian dollars unless indicated otherwise.
The Company reported net loss attributable to common
shareholders of $0.4 million, or
$0.02 loss per share, and total
comprehensive loss of $0.6 million in
the third quarter of 2020, primarily due to $0.8 million general and administrative expenses
and $0.3 million currency translation
loss, partially mitigated by aggregate realized and unrealized
gains of $0.4 million on marketable
securities. Itasca reported net loss attributable to common
shareholders and total comprehensive loss of $0.7 million, or $0.03 loss per share in the third quarter of
2019.
The increase in general and administrative expenses in third
quarter of 2020 is primarily related to legal and other expenses
incurred in connection with the previously announced investment by
Itasca's investee company, 1347 Investors LLC, in sawmill and
related assets located in Kenora,
Ontario, as well as non-brokered private placement financing
of 2,000,000 units (the "Units") at a purchase price of
$0.50 per Unit and of 4,000
convertible debentures (the "Convertible Debentures") at a purchase
price of $1,000 per Convertible
Debenture, for aggregate gross proceeds of $5,000,000. As previously announced, the
investment in Kenora sawmill and
the private placement financing closed on October 6, 2020 and October 22, 2020, respectively.
As of September 30, 2020, Itasca
reported total shareholders' equity of $12.6
million with a book value per share of $0.58 based on the 21,810,626 issued and
outstanding common shares.
Management Comments:
Larry G. Swets, Jr., Chief Executive
Officer and Director, stated, "We are very pleased to complete the
acquisition of Kenora sawmill as
well as the private placement financing, and are working towards
bringing the sawmill online. We look forward to continue
working with our Board, including recent additions of Paul Rivett and Rick
Doman, as we pursue value enhancing opportunities in lumber
investments."
Forward Looking Information
Certain information in this news release constitutes
forward-looking statements under applicable securities laws. Any
statements that are contained in this news release that are not
statements of historical fact are forward-looking statements.
Forward looking statements are often identified by terms such as
"may", "should", "anticipate", "expect", "potential", "believe",
"intend", "estimate" or the negative of these terms and similar
expressions. Forward-looking statements in this news release
include, but are not limited to, statements with respect to the
expectations related to Kenora
sawmill, the anticipated benefits of the acquisition to 1347 LLC,
and the future developments of Itasca including board
appointments.
Forward-looking statements are based on assumptions, including
expectations and assumptions concerning: interest and foreign
exchange rates; capital efficiencies, the lumber industry (and its
growth and growth rates) in North
America, the anticipated benefits of the acquisition and the
Company's future plans and ability to complete future investments.
While the Company considers these assumptions to be reasonable,
based on information currently available, they may prove to be
incorrect. Readers are cautioned not to place undue reliance on
forward-looking statements. In addition, forward-looking statements
necessarily involve known and unknown risks, including, without
limitation, risks associated with general economic conditions;
adverse industry events; future legislative, tax and regulatory
developments. Readers are cautioned that the foregoing list is not
exhaustive and other risks are set out in the Company's public
disclosure record filed under the Company's profile on
www.sedar.com. Readers are further cautioned not to place undue
reliance on forward-looking statements as there can be no assurance
that the plans, intentions or expectations upon which they are
placed will occur. Such information, although considered reasonable
by management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement and reflect our
expectations as of the date hereof, and thus are subject to change
thereafter. The Company disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law.
Neither TSXV nor its Regulation Services Provider (as that term
is defined in policies of the TSXV) accepts responsibility for the
adequacy or accuracy of this news release.
Cautionary Note
Book value per share is a non-IFRS measure calculated as the
total of shareholders' equity divided by the issued and outstanding
shares of Itasca. The term "book value per share" does not have any
standardized meaning according to IFRS and therefore may not be
comparable to similar measures presented by other companies. There
is no comparable IFRS measure presented in Itasca's consolidated
financial statements and thus no applicable quantitative
reconciliation for such non-IFRS financial measure. Itasca believes
that book value per share can provide information useful to its
shareholders.
SOURCE Itasca Capital Ltd.
