CALGARY, Nov. 16, 2011 /CNW/ - NewNorth Projects Ltd. ("NewNorth")
(TSXV:NNP) 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.
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
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
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.
SOURCE NewNorth Projects Ltd.
For further information:
Mr. Greg N. Herndier, Chief Executive Officer or Mrs. Shannon Cook, Controller at (403)531-0280