/THIS PRESS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY./
Toronto Stock Exchange Symbol: COF
TORONTO, Feb. 11 /CNW/ - Coventree Inc. (TSX: COF) ("Coventree" or the
"Company") today announced its financial results for the three months ended
December 31, 2008. All amounts are reported in Canadian dollars.
Coventree's net loss for the three months ended December 31, 2008 was
$1.6 million compared to net income of $3.1 million for the three months ended
December 31, 2007. The Company's expenses for the three months ended December
31, 2008 included $1.4 million in costs associated with the Special Committee
formed to oversee the Company's response to the investigation by the Ontario
Securities Commission (the "OSC"). In addition, there was a $0.7 million
unrealized loss in the fair value of the Company's investment in Xceed
Total revenue for the three months ended December 31, 2008 of $3.3
million decreased $7.7 million compared to the three months ended December 31,
2007 as the Company continued to be negatively impacted by the disruption in
the Canadian asset-backed commercial paper ("ABCP") market.
Operating expenses for the three months ended December 31, 2008 of $4.3
million decreased by $2.1 million compared to the same period in the previous
year. Most of the decrease is due to lower compensation and benefits expenses
as the Company now has fewer employees.
The Company's Management Discussion & Analysis and unaudited consolidated
financial statements for the three months ended December 31, 2008 will be
available under the "Coventree Owners" section of the Company's website at
www.coventree.ca and on SEDAR at www.sedar.com.
Consistent with its previous announcements, now that the restructuring of
the market-disrupted Canadian third party ABCP has closed, the Company expects
to implement an orderly wind down of its operations. As part of the January
21, 2009 closing of the restructuring, Coventree entered into an agreement
(the "Transition Services Agreement") to provide certain transitional
administrative services for four months to the new special purpose vehicles
that acquired the assets formerly held by the Coventree-sponsored conduits.
The Company will reduce its workforce as and when the services of particular
employees are no longer required by the Company to meet its obligations under
the Transition Services Agreement or to complete an orderly wind down of the
Company. There can be no assurance regarding when a formal winding up of the
Company or a subsequent distribution of funds to shareholders will occur, how
long such process will take or what funds will remain to be distributed to
shareholders at such time. A number of factors, some of which are beyond the
Company's control, could affect the timing of a formal winding up or the
amount of funds available for distribution. For example, Coventree has agreed
that it would not make or pay any dividend or other distribution to its
shareholders generally without having given at least 45 days' prior written
notice to the OSC.
This press release includes certain forward-looking statements relating
to the Company's expectations to implement an orderly wind down of its
operations and to reduce its workforce. These statements can be identified by
the expressions "expects" and "will". 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 16 to 17 of the Company's
Management Discussion and Analysis for the three months ended December 31,
2008 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 effect an orderly wind down of its operations in
the near future or at all, and may not reduce its workforce. 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.
For further information:
For further information: Craig Armitage, The Equicom Group Inc., Tel:
(416) 815-0700 x278, Email: firstname.lastname@example.org