NEWNORTH ANNOUNCES RESULTS FOR THE QUARTER ENDING MARCH 31, 2011
June 29 2011 - 12:56PM
PR Newswire (Canada)
CALGARY, June 29, 2011 /CNW/ -- CALGARY, June 29, 2011 /CNW/ -
NewNorth Projects Ltd. ("NewNorth") (TSXV:NNP) today announced its
financial results for the quarter ending March 31, 2011. Mr. Greg
Herndier, President and Chief Executive Officer of NewNorth,
reports a net loss after tax of $347,000 which includes debenture
interest of $139,000. After tax loss per share, basic and diluted
is $0.03. Select information for the period: -- Subsequent to the
first quarter of 2011 and as of the date of this document, NewNorth
has sold four units of the Vista Village project, a condominium
project in Red Deer, Alberta. The gross proceeds for these sales
were approximately $617,000. An additional 15 units have been
conditionally sold as of the date of this document. -- NewNorth
sold its 50% interest in a rental property in Yellowknife, NWT on
June 1, 2011. -- 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.
Management believes that the value of the net assets of NewNorth
significantly exceeds the current share value. 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. The above mentioned sales are the first step in the
financial restructuring being undertaken by management. 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 anticipates selling the balance of the Sheep
River project this year. 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/June2011/29/c2253.html p
iMr. Greg N. Herndier, Chief Executive Officer or Mrs. Shannon
Cook, Controller at (403)531-0280/i /p
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