NewNorth announces results for the quarter ending June 30, 2011
July 28 2011 - 2:42PM
PR Newswire (Canada)
CALGARY, July 28, 2011 /CNW/ -- CALGARY, July 28, 2011 /CNW/ -
NewNorth Projects Ltd. ("NewNorth") (TSXV:NNP) today announced its
financial results for the six months ending June 30, 2011. Mr. Greg
Herndier, President and Chief Executive Officer of NewNorth,
reports a net loss after tax of $843,000 which includes debenture
interest of $278,000. After tax loss per share, basic and diluted
is $0.07. Select information for the period: -- In the second
quarter of 2011, ten units of the Vista Village project, a
condominium project in Red Deer, Alberta were sold. The gross
proceeds for these sales were approximately $1,534,000. At the date
of this document, five additional units have been sold and the
remaining units, sixteen, are conditionally sold and are expected
to close by the end of August. -- NewNorth sold its 50% interest in
a rental property in Yellowknife, NWT on June 1, 2011 for $342,087.
-- At June 30, 2011, the Company's current ratio (current assets to
current liabilities) is 1.78:1 and the adjusted debt to equity
ratio is 0.52:1 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
mention 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
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iMr. Greg N. Herndier, Chief Executive Officer or Mrs. Shannon
Cook, Controller at (403)531-0280/i /p
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