Coventree Reports First Quarter 2011 Financial Results
15 February 2011 - 10:49AM
PR Newswire (Canada)
TORONTO, Feb. 14 /CNW/ -- NEX Symbol: COF.H TORONTO, Feb. 14
/CNW/ - Coventree Inc. (NEX: COF.H) ("Coventree" or the "Company")
today announced its financial results for the three months ended
December 31, 2010. All amounts are reported in Canadian dollars.
Coventree's net loss for the three months ended December 31, 2010
was $3.3 million, compared to a net loss of $1.4 million for the
same period in the previous year. Total revenue for the three
months ended December 31, 2010 was $0.3 million, which was the same
as total revenue for the same period in the previous year.
The Company's primary source of revenue was interest income from
investments. Operating expenses for the three months ended December
31, 2010 were $3.0 million, which represents an increase of $1.5
million compared to the same period in the previous year. This
increase is a result of, among other things, a $1.9 million
increase in legal and consulting fees related to the Ontario
Securities Commission ("OSC") hearing that commenced earlier in
2010, offset by small decreases in both compensation and benefits
expenses and administration expenses, as the Company continues to
wind down its operations. Legal and consulting fees related
to the OSC hearing for the three months ended December 31, 2010
were $2.6 million, compared to $0.7 million in the same period in
the previous year. For the three months ended December 31, 2010,
there was a $0.6 million unrealized pre-tax loss on the Company's
investment in shares of Xceed Mortgage Corporation compared to an
unrealized pre-tax loss of $0.1 million for the three months ended
December 31, 2009. The Company's Management Discussion and Analysis
and unaudited consolidated financial statements for the three
months ended December 31, 2010 will be available under the
"Coventree Owners" section of the Company's website at
www.coventree.ca and on SEDAR at www.sedar.com. Coventree is
continuing with its previously announced plans to wind down the
Company and its operations. In that regard, at the Company's annual
and special meeting of shareholders on June 30, 2010, shareholders
approved a special resolution authorizing the winding up of the
Company and the distribution of its remaining assets, if any, to
shareholders. The winding up of the Company will commence and
become effective at a time to be determined by the Company's board
of directors. The board intends to set the effective date as
promptly as practicable following the final determination of the
OSC proceeding. However, the timing of any formal winding up
of the Company and the amount and timing of any distribution of
funds to shareholders under such a winding up cannot be determined
at this time. A number of factors, some of which are beyond the
Company's control, will affect the timing of, or the amount of
funds available for distribution upon, a formal winding up of the
Company, including the timing and outcome of the decision to be
issued by the OSC in respect of the hearing described above.
A final determination of the OSC proceeding is the principal matter
to be resolved prior to the implementation by the Company of its
winding up and the distribution of its remaining assets. In
that regard, the OSC hearing ended on December 9, 2010, and the OSC
reserved its decision at that time. There can be no assurance
as to when the OSC will issue its decision in the matter.
Forward-Looking Statements This press release includes certain
forward-looking statements relating to the Company's expectations
to wind down its operations and to implement a formal winding up of
the Company. These statements can be identified by the expressions
"will" and "intends". These forward-looking statements are not
historical facts but reflect Coventree's current expectations
regarding future events based on information currently available to
Coventree. These forward-looking statements are subject to a number
of known and unknown risks, uncertainties and assumptions which may
be substantial. Many factors could cause actual results or events
to differ materially from current expectations that may be
expressed or implied by such forward-looking statements, including,
without limitation, the various matters discussed under "Risks and
Uncertainties" contained on pages 10 to 12 of the Company's
Management Discussion and Analysis for the three months ended
December 31, 2010 which is available under the Company's profile on
SEDAR at www.sedar.com. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking statements prove incorrect, the Company may not be
able to wind down its operations or implement a formal winding up
of the Company in the near future or at all; the amount of funds
available to be distributed to shareholders pursuant to such a
winding up could be significantly reduced and/or the timing of the
distribution of such funds could be significantly delayed. These
factors should be considered carefully and prospective investors
should not place undue reliance on the forward-looking statements.
These forward-looking statements are made as of the date of this
press release and Coventree does not intend, and does not assume
any obligation, to update or revise these forward-looking
statements, except as required by law. This press release is
intended for distribution in Canada only. Neither TSX Venture
Exchange nor it 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. To
view this news release in HTML formatting, please use the following
URL:
http://www.newswire.ca/en/releases/archive/February2011/14/c2694.html
pCraig Armitage, The Equicom Group Inc.br/ Tel: (416) 815-0700
x278br/ Email: a
href="mailto:carmitage@equicomgroup.com"carmitage@equicomgroup.com/abr/
- or -br/ Ani Hotoyan-Joly, Coventree Inc.br/ Tel: (416)
572-2721br/ Email: a
href="mailto:ani@coventree.ca"ani@coventree.ca/a/p
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