Coventree Reports Second Quarter 2011 Financial Results

/THIS PRESS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY./

NEX Symbol: COF.H 

TORONTO, April 29 /CNW/ - Coventree Inc. (NEX: COF.H) ("Coventree" or the "Company") today announced its financial results for the three and six months ended March 31, 2011. All amounts are reported in Canadian dollars.

Coventree's net loss for the three and six months ended March 31, 2011 was $0.1 million and $3.3 million, respectively, compared to a net loss of $2.3 million and $3.7 million, respectively, in the same periods in 2010.

Total revenue for the three and six months ended March 31, 2011 was $0.3 million and $0.6 million respectively, and was the same for the corresponding periods in 2010.  The Company's primary source of revenue during the three and six months ended March 31, 2011 was interest income earned on cash and cash equivalents held by the company.

Operating expenses for the three and six months ended March 31, 2011 were $0.6 million and $3.6 million, respectively, which represents a decrease of $2.2 million and $0.7 million, respectively, compared to the same periods in the previous year. This decrease is mainly the result of the decrease in legal and consulting fees related to the OSC proceeding as the proceeding ended in December 2010. Legal and consulting fees related to the OSC hearing for the three and six months ended March 31, 2011 were nil and $2.6 million, respectively, compared to $2.2 million and $2.9 million, respectively, in the previous year.

For the three and six months ended March 31, 2011, there was a $0.3 million unrealized pre-tax gain and $0.3 million unrealized pre-tax loss, respectively, on the Company's investment in shares of Xceed Mortgage Corporation compared to an unrealized pre-tax gain of $0.4 million and $0.3 million, respectively, for the three and six months ended March 31, 2010.

The Company's Management Discussion and Analysis and unaudited consolidated financial statements for the three and six months ended March 31, 2011 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 expects to implement a formal winding up of the Company. 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", "expects" 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 and six months ended March 31, 2011 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.

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.

SOURCE Coventree Inc.

For further information:

Craig Armitage, The Equicom Group Inc.
Tel: (416) 815-0700 x278
Email: carmitage@equicomgroup.com
-or-
Ani Hotoyan-Joly, Coventree Inc.
Tel: (416) 572-2721
Email:  ani@coventree.ca

Profil de l'entreprise

Coventree Inc.

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