NewNorth announces results for the quarter ending September 30, 2011
November 16 2011 - 4:01AM
PR Newswire (Canada)
CALGARY, Nov. 16, 2011 /CNW/ - NewNorth Projects Ltd. ("NewNorth")
today announced its financial results for the nine months ending
September 30, 2011. Mr. Greg Herndier, President and Chief
Executive Officer of NewNorth, reports a net loss after tax of
$1,303,000 which includes debenture interest of $403,000. After tax
loss per share, basic and diluted is $0.11. Select information: --
NewNorth has sold all of the units of the Vista Village project, a
condominium project in Red Deer, Alberta. The gross proceeds for
these sales were $4,839,870. Of those proceeds, approximately
$705,930 came from the redemption of debentures payables. The
debentures were redeemed at face value. -- NewNorth sold its 50%
interest in a rental property in Yellowknife, NWT on June 1, 2011
for $342,087. -- NewNorth has sold the remaining portion of the
Sheep River development project for $2,800,000. The transaction is
expected to close November 30, 2011. -- At September 30, 2011, the
Company's current ratio (current assets to current liabilities) is
1.77:1 and the adjusted debt to equity ratio is 0.36:1 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 of
assets are part of the financial restructuring being undertaken by
management. Once the restructuring process has taken place,
management will be able 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 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. NewNorth Projects Ltd. CONTACT: Mr. Greg N. Herndier,
Chief Executive Officer or Mrs. ShannonCook,Controller at
(403)531-0280
Copyright
New North Projects (TSXV:NNP)
Historical Stock Chart
From Jun 2024 to Jul 2024
New North Projects (TSXV:NNP)
Historical Stock Chart
From Jul 2023 to Jul 2024