NEX Symbol: COF.H
TORONTO, Aug. 20 /CNW/ - Coventree Inc. (NEX: COF.H) ("Coventree" or the "Company") today announced its financial results for the three and nine months ended June 30, 2010. All amounts are reported in Canadian dollars.
Coventree's net loss for the three and nine months ended June 30, 2010 was $7.8 million and $11.5 million, respectively, compared to net income of $0.7 million and $1.4 million for the same periods in the previous year.
Total revenue for the three and nine months ended June 30, 2010 of $1.3 million and $1.8 million, respectively, decreased by $2.5 million and $11.5 million, respectively, compared to the same periods in the previous year. The only source of revenue in 2010 is from interest income from our investments and in the third quarter, the $1 million recovery under a directors and officers insurance policy.
Operating expenses for the three and nine months ended June 30, 2010 were $7.1 million and $11.4 million, respectively, which represent an increase of $3.7 million and nil, respectively, compared to the same periods in the previous year. The increase is due to higher legal and related expenses incurred with the respect to preparation for and attendance at the OSC hearings. Expenses for the three and nine months ended June 30, 2010 included $6.3 million and $9.2 million, respectively, in costs associated with the proceeding commenced by staff of the Ontario Securities Commission by notice of hearing dated December 7, 2009 (the "OSC Proceeding").
The Company's Management Discussion and Analysis and unaudited consolidated financial statements for the three and nine months ended June 30, 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 to proceed with its previously announced plans to wind down the Company and its operations. In that regard, the Company had its annual and special meeting of shareholders on June 30, 2010 at which shareholders approved a special resolution authorizing the winding up of the Company and the distribution of its remaining assets to shareholders. 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. A number of factors, some of which are beyond the Company's control, could affect the timing of, or the amount of funds available for distribution upon, a formal winding up of the Company, including the OSC Proceeding. The OSC Proceeding is the principal matter that needs to be resolved prior to the implementation by the Company of its winding up and distribution of its remaining assets.
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 "expects", "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 13 and 14 of the Company's Management Discussion and Analysis for the third quarter ended June 30, 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; and 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.
SOURCE Coventree Inc.
For further information: For further information: Craig Armitage, The Equicom Group Inc., Tel: (416) 815-0700 x278, Email: firstname.lastname@example.org or Ani Hotoyan-Joly, Coventree Inc., Tel: (416) 572-2721, Email: email@example.com