CALGARY,
Nov. 15, 2012 /CNW/ - NewNorth
Projects Ltd. ("NewNorth") (TSXV:NNP) today announced its financial
results for the quarter ending September 30,
2012.
Mr. Greg
Herndier, President and Chief Executive Officer of NewNorth,
reports a net loss after tax for the nine months ending
September 30, 2012 of $1,095,000 which includes debenture interest of
$23,000.
After tax loss per share, basic and diluted is
$0.09.
Select information:
- NewNorth received $500,000 in
financing in July 2012 from one of
the independent directors on NewNorth's Board of Directors.
Full payment of the loan is required on January 03, 2013 with an option, at NewNorth's
discretion, to extend the loan for six months longer. The
interest rate on the loan is 10% per annum. As security for
the loan, a mortgage was registered against the title to NewNorth's
property in Cochrane, AB.
- NewNorth received a loan of $500,000 from an unrelated party in June 2012. The full amount of the loan is
due on March 31, 2012. The interest
rate on the loan is 10% per annum and the loan is unsecured.
- At September 30, 2012, the
Company's current ratio (current assets to current liabilities) is
4.76:1 and the adjusted debt to equity ratio is 0.42:1 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.
NewNorth is an integrated land and building
development corporation operating in Alberta and the Northwest Territories.
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.
SOURCE NewNorth Projects Ltd.