EarthFirst Canada Inc. announces third quarter results for 2007



    /NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES WIRE
    SERVICES/

    VICTORIA, Dec. 14 /CNW/ - EarthFirst Canada Inc. ("EarthFirst") (EF,
EF.WT; TSX) is pleased to announce the release of its third quarter financial
results.
    The third quarter was a quarter of significant change at EarthFirst as it
prepared itself for its $140 million Initial Public Offering ("IPO") which, as
previously announced, closed on December 11, 2007.
    On August 31, 2007, EarthFirst's Shareholders approved a Restructuring of
EarthFirst aimed to: i) simplification of the capital structure of the
Corporation by re-designating the Class A Shares of the Corporation as Common
Shares, creating Convertible Preferred Shares and changing all of the issued
and outstanding Class B Shares of the Corporation and Preferred Shares of the
Corporation into Common Shares and Convertible Preferred Shares that
automatically convert into Common Shares on the achievement of certain
milestones, ii) internalization of the management of a joint venture in place
between EarthFirst Energy Inc. and Creststreet Capital Corporation through the
acquisition of all of the issued and outstanding shares of certain affiliates
of Creststreet and EFE in exchange for Convertible Preferred Shares in the
Corporation, and iii) secure for the Corporation certain executive,
management, administrative and other services necessary to proceed with the
construction, development and financing of the Dokie I Project in British
Columbia as well as carry out its other business activities. This
restructuring was a prerequisite to EarthFirst proceeding with its IPO.
    On August 31, 2007 the shareholders also approved the acquisition of
Windrise Power Inc., Benchlands Wind Power Corp., Grand Valley Wind Farms
Inc., Bonavista Wind Power Inc. and Buffalo Atlee Wind Energy Inc. from the
Creststreet Windpower Development LPs, Creststreet entities and independent
joint venture partners (collectively the "Seedco Acquisitions"). These
Acquisitions closed concurrently on December 11, 2007 with the closing of
EFC's $140 million initial public offering. These Seedco Acquisitions are
further described in the Acquisition Transaction section of the third quarter
MD&A.
    On August 7, 2007 EarthFirst completed a $15 million private placement
which raised net proceeds of $13.85 million pursuant to which 4,270,000
flow-through common shares and 2,162,500 Common Shares were issued. This
private placement provided funding for the EarthFirst until the IPO was
completed.
    During the third quarter operational activities at the Dokie I project in
the Peace River Region of British Columbia were focused on detailed electrical
design engineering work, geotechnical work as well as road and bridge design.
The Dokie I project is a 144 MW windpower project located at Dokie Ridge in
the Rocky Mountain foothills of the Peace River region in northeast British
Columbia approximately 150 kilometres southwest of Fort St. John, British
Columbia. At Grand Valley, a 30MW windpower project approximately 15
kilometres west of Orangeville Ontario, work continued on the Environmental
Assessment, interconnection and the turbine supply agreement for the project.
    EarthFirst is a development stage company that does not anticipate
generating revenues from windpower production until late 2008 when the CRCE
Phase of the Dokie I project is completed. During the third quarter EarthFirst
incurred $0.9 million of expenses related to the restructuring of the
organization. It also incurred a non cash expense of $9.5 million in
connection with the exchange of the Preferred Shares for Common shares, which
occurred as part of the Restructuring transactions. This resulted in a net
loss for the third quarter of $9.7 million and a loss of $9.8 million for the
year to date.

    EarthFirst is a leading Canadian developer of wind energy projects with a
portfolio of over 2,500 MW of potential renewable generating capacity
including its 144 MW Dokie Ridge project in North East BC which is expected to
enter commercial production by the end of 2009. Common shares and warrants of
EarthFirst Canada Inc. are listed on the TSX under the symbol EF and EF.WT
respectively.

    CERTAIN STATEMENTS INCLUDED IN THIS NEWS RELEASE CONSTITUTE
"FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE SECURITIES ACT
(ONTARIO). SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS,
UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS,
PERFORMANCE OR ACHIEVEMENTS OF THE PARTNERSHIP TO BE MATERIALLY DIFFERENT FROM
ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH
FORWARD-LOOKING STATEMENTS.
    THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS
THE EXPECTATIONS OF EARTHFIRST CANADA INC. AS AT December 14, 2007, AND,
ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. HOWEVER, EARTHFIRST CANADA
INC. EXPRESSLY DISCLAIMS ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE ANY
FORWARD-LOOKING INFORMATION, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE
EVENTS OR OTHERWISE, EXCEPT AS REQUIRED BY APPLICABLE LAW.

    
                           www.earthfirstcanada.com

    This announcement is not for release, publication or distribution, in
whole or in part (i) in or into the United States, the United Kingdom,
Australia, Japan, the Republic of Ireland, Germany, Switzerland, South Africa
or any other jurisdiction in or into which such release, publication or
distribution would be unlawful; or (ii) to any national, resident or citizen
of such jurisdictions.


           EarthFirst Canada Inc. (formerly Dokie Wind Energy Inc.)

                   Unaudited Interim Financial Statements
                             September 30, 2007
                               Balance Sheets

                                                            As at      As at
                                                          Sept 30,    Dec 31,
                                                             2007       2006
                                                    -------------------------
                                                    (Unaudited, In Thousands)

    ASSETS
    Current Assets
    Cash and cash equivalents                            $ 10,183   $  5,904
    Cash held in escrow                                         9        744
    Accounts receivable                                        76         30
    Prepaid expense                                         1,132          -
    Deferred financing charges                                  -         21
    Due from related parties                                  609        180
                                                        ---------- ----------
                                                           12,009      6,879
    Deferred development costs
     and others                                            11,420      4,775
    Pre-operating costs and
     deferred charges                                       2,767      1,003
    Performance deposits                                   11,700     10,800
                                                        ---------- ----------
                                                         $ 37,896   $ 23,457
                                                        ---------- ----------
                                                        ---------- ----------
    LIABILITIES
    Current Liabilities
    Accounts payable and accrued
     liabilities                                            2,079        407
    Due to related parties                                     96        104
                                                        ---------- ----------
                                                            2,175        511
    Subordinated note payable                                   -      1,219
    Preferred shares                                            -         82
    Future income tax liability                             5,632        845
                                                        ---------- ----------
                                                            7,807      2,657
    Share capital                                          59,923     20,800
    Deficit and Accumulated Other
     Comprehensive Income                                 (29,834)         -
                                                        ---------- ----------
                                                         $ 37,896   $ 23,457
                                                        ---------- ----------
                                                        ---------- ----------



               Statement of Operations and Comprehensive Income

                                    Three months ended     Nine months ended
                                    Sept 30,   Sept 30,   Sept 30,   Sept 30,
                                      2007       2006       2007       2006
                                           (Unaudited, In Thousands)

    Revenue                        $      -   $      -   $      -   $      -
    Expenses
    Reorganization costs                883   $      -   $  1,163   $      -

    Preferred Share conversion
     on Restructuring                 9,518          -      9,518          -
                                  ---------- ---------- ---------- ----------
    Loss before the undernoted      (10,401)         -    (10,681)         -
    Future Income Tax Recovery         (657)         -       (847)         -
                                  ---------- ---------- ---------- ----------
    Net Loss and comprehensive
     loss                          $ (9,744)         -   $ (9,834)  $      -
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------
                                                     -                     -
    Deficit, beginning of period,
     as previously reported        $    (90)  $      -   $      -   $      -
                                  ---------- ---------- ---------- ----------
    Share Capital restructuring
     - Class B shares conversion    (20,000)         -    (20,000)         -
                                  ---------- ---------- ---------- ----------
    Deficit, end of period         $(29,834)  $      -   $(29,834)  $      -
                                  ---------- ---------- ---------- ----------
    Accumulated other
     comprehensive income                 -          -          -          -
                                  ---------- ---------- ---------- ----------
    Deficit and accumulated
     other comprehensive income    $(29,834)  $      -   $(29,834)  $      -
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------



                           Statement of Cash Flows

                                    Three months ended     Nine months ended
                                    Sept 30,   Sept 30,   Sept 30,   Sept 30,
                                      2007       2006       2007       2006
                                           (Unaudited, In Thousands)

    Cash flows from operating
     activities
    Net Loss                       $ (9,744)  $      -   $ (9,834)  $      -
    Add(deduct) items not
     affecting cash:
    Preferred Share conversion
     on Restructuring                 9,518          -      9,518          -
    Future income tax recovery        (657)          -       (847)         -
                                  ---------- ---------- ---------- ----------
                                      (883)          -     (1,163)         -
    Non-cash operating working
     capital
    (Increase) decrease in
     accounts receivable                (6)          5        (46)        61
    Increase in prepaid expense        (48)          -        (48)         -
    Increase in accounts payable
     and accrued liabilities           260           -        506          -
    Increase in amounts due to
     (from) related parties
     (Note 8)                         (191)          1       (437)       (16)
                                  ---------- ---------- ---------- ----------
                                      (868)          6     (1,188)        45
                                  ---------- ---------- ---------- ----------
    Cash flows from financing
     activities
    Proceeds from share issue        15,000     10,657     17,000     11,897
    Decrease in cash held in escrow       -     (1,117)       735        (20)
    Issue costs (Note 10)            (1,837)      (865)    (1,843)      (865)
    Increase in deferred financing
     costs                                -          -          -       (205)
    Increase (decrease) in notes
     payable                         (1,000)     4,500      (1,219)    4,500
                                  ---------- ---------- ---------- ----------
                                     12,163     13,175      14,673    15,307
    Cash flows from investing
     activities
    Increase in performance
     deposits                          (900)   (10,650)      (900)   (11,214)
    Increase in prepaid expense      (1,066)         -     (1,084)         -
    Increase in deferred
     development costs and
     pre-operating costs               (928)    (1,128)    (7,222)    (2,494)
                                  ---------- ---------- ---------- ----------
                                     (2,894)   (11,778)    (9,206)   (13,708)
                                  ---------- ---------- ---------- ----------
    Net increase (decrease) in
     cash and cash equivalents        8,401      1,403      4,279      1,644
    Cash and cash equivalents,
     beginning of period              1,782        298      5,904         57
    Cash and cash equivalents,
     end of period                 $ 10,183   $  1,701   $ 10,183   $  1,701
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------

    Supplemental cash information
    Interest paid                  $     55   $      -   $     98   $      -
                                  ---------- ---------- ---------- ----------
                                  ---------- ---------- ---------- ----------
    





For further information:

For further information: Grant Bunker, Director, Investor Relations,
EarthFirst Canada Inc., Tel: (416) 628-2164, Toll Free: 1-866-622-4715,
E-mail: gbunker@earthfirstcanada.com; Derren Newell, VP, Finance and Chief
Financial Officer, EarthFirst Canada Inc., Tel: (403) 513-0766, Toll Free:
1-877-513-0777, E-Mail: dnewell@earthfirstcanada.com

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EARTHFIRST CANADA INC.

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