Look Communications reports fiscal 2011 results

TORONTO, Nov. 29, 2011 /CNW/ - Look Communications Inc. ("Look" or the "Corporation") (NEX: LOK.H and LOK.K) today reported its operating and financial results for the year ended August 31 2011.

Operating highlights included the following:

  • On June 3, 2011, the Corporation sold its land and building for an aggregate consideration of $3.05 million;
  • On July 6, 2011, the Corporation issued a Statement of Claim (the "Claim") in the Ontario Superior Court of Justice (the "Court") against certain former directors and certain former officers of Look in connection with the payment of approximately $20.0 million of "restructuring awards" paid in 2009 (the "Sale Awards"), of which approximately $15.7 million was paid to the directors and senior officers named in the Claim (or their personal holding companies, as applicable) from the net proceeds of approximately $64.0 million realized by the Corporation on the sale of its spectrum licence in 2009. The former officers and directors named in the Claim collectively resigned effective July 21, 2010.  None of the allegations in the Claim have been proven before the Court and none of the defendants have filed a statement of defence. Look intends to vigorously pursue its claims against the former directors and former officers named in the Claim (as well as their personal holding companies, as applicable) for payments and decisions which the Corporation believes were not in Look's or its shareholders' best interests; and
  • The Corporation continues to pursue opportunities to realize the value of its remaining material non-cash assets, which includes approximately $165 million in tax attributes.

Financial highlights included the following:

  • Cash and cash equivalents and short-term investments at August 31, 2011 totalled $27.5 million, which represents an increase of $0.2 million from August 31, 2010. This increase is due primarily to the sale of Look's land and building in fiscal 2011 offset mainly by losses from ongoing operations;
  • Operating expenses before amortizations and restructuring charges for fiscal 2011 totalled $4.3 million, a decrease of $1.4 million or 23.7% from the $5.7 million incurred during fiscal 2010; and
  • The net loss for the year ended August 31, 2011 was $3.0 million, or a basic loss per share of $0.02.

The Corporation continues to pursue opportunities to realize value from its tax attributes. The Corporation's remaining tax attributes of approximately $165 million may be utilized by the Corporation in its future operations, or may be utilized by a potential acquirer to offset income, provided certain tests are satisfied including those related to change in control.

For further information on Look's financial results, please review the Corporation's annual audited consolidated financial statements and management's discussion and analysis of financial condition and results of operations for the years ended August 31, 2011 and 2010.

About Look Communications Inc.

Look's shares are listed on the NEX under the symbols "LOK.H" for Multiple Voting Shares and "LOK.K" for Subordinate Voting Shares. Look's website may be found at www.look.ca.

The corporate information contained in this release includes forward-looking statements regarding future events and the future performance of Look that involve risks and uncertainties that could cause actual results to differ materially. Assumptions used in the preparation of such information, although considered reasonable by Look at the time of preparation, may prove to be incorrect. The actual results achieved may vary from the information provided herein and the variations may be material. Consequently, there is no representation by Look that actual results achieved will be the same in whole or in part as those forecast.

Neither the NEX nor its Regulation Services Provider (as that term is defined in the policies of the NEX) accepts responsibility for the adequacy or accuracy of this release.


SOURCE Look Communications Inc.

For further information:

Grant McCutcheon
Chief Executive Officer and Director
(416) 613-8222

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Look Communications Inc.

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