NEWNORTH ANNOUNCES RESULTS FOR THE YEAR ENDED DECEMBER 31, 2010
May 02 2011 - 1:10PM
PR Newswire (Canada)
CALGARY, May 2 /CNW/ -- CALGARY, May 2 /CNW/ - NewNorth Projects
Ltd. (NNP - TSXV) today announced its financial results for the
year ended December 31, 2010. Mr. Greg Herndier, President and
Chief Executive Officer of NewNorth, reports a net loss after tax
of $2,636,000 which includes debenture interest of $546,000.
The results include a negative revaluation adjustment to the Vista
Village project of $1,312,000, a loss on an investment in
subsidiary of $253,000 and a negative revaluation adjustment of
vacant land held in Inuvik, NT of $173,000. After tax loss per
share, basic and diluted is $0.22. Select information for the year:
-- At December 31, 2010, the Company's current ratio (current
assets to current liabilities) is 15.88:1 and the adjusted debt to
equity ratio is 0.48:1 which exceeds NewNorth's operating loan
covenants requirements of a current ratio not to be less than
1.25:1 and an adjusted debt to equity ratio not to exceed 2:1. -- A
Normal Course Issuer Bid ("NCIB") was entered into in January,
2010. 58,000 shares have been purchased in 2010 at an average price
of 0.44. Management believes that the value of NewNorth
significantly exceeds the current stock prices. Two of management's
goals in 2011 are to lower the cost of operating by paying out a
portion of its debenture payable and to recapitalize the
Company. In order to achieve these goals, it is management's
intention to sell properties that have achieved their maximum value
and to sell Vista Village, a condominium project in Red Deer,
Alberta. These measures will allow management to refocus its
efforts on key development opportunities. NNP continues to add
value to land holdings by obtaining the necessary approvals.
Having those approvals will allow NNP to begin to execute
development plans. NewNorth will begin selling the Sheep
River Cove project, Phase 4, in 2011. NewNorth is an
integrated land and building development Corporation operating in
Alberta, the Northwest Territories and Nunavut. 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. The
contents of this release have not been approved or disapproved by
any securities authority or stock exchanges. To view this news
release in HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/May2011/02/c8497.html p
iplease contact Mr. Greg N. Herndier, Chief Executive Officer or
Mrs. Shannon Cook, Controller at (403)531-0280./i /p
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