Toronto Stock Exchange: EDV
GEORGE TOWN, Grand Cayman, Feb. 9 /CNW/ - Endeavour Financial Corporation
("Endeavour" or the "Corporation") today reported a net loss of US$111.1
million or US$3.68 per share, for the quarter ended December 31, 2008. This
compares with net income of US$1.5 million or US$0.05 per share for the
quarter ended December 31, 2007.
The loss during the quarter is principally driven by an investment loss
of US$109.8 million comprised of realized losses on the sale of investments of
US$28.0 million, interest and dividends of US$0.3 million and a mark-to-market
loss on the investments of US$82.1 million. Advisory fee revenue during the
quarter was $2.4 million.
The financial results in the quarter ended December 31, 2008 are a direct
result of the continued sell-off in the global markets, which resulted in
significant mark-to-market losses on the Corporation's investment portfolio.
Including the effects of the mark-to-market adjustments noted above, the
Corporation's book value was US$125 million (or approximately CDN$4.98 per
issued and outstanding share), compared to US$236 million (or approximately
CDN$8.31 per share) as of September 30, 2008.
At December 31, 2008 the Corporation had cash and cash equivalents of
US$4.8 million, investments of US$63.9 million and a working capital position
of US$68.9 million (see Subsequent Events for the Corporation's recent equity
offering, completed February 4, 2009).
Neil Woodyer, President and Chief Executive Officer commented "Despite
our second quarter results, we continue to aggressively pursue investment
opportunities and specifically those in the precious metals sector. The
recent, successful, re-capitalization of the Corporation as a result of the
completed equity offering for gross proceeds of CDN$115 million has enabled us
to remain proactive and competitive. Our primary objective to maintain
long-term performance has not changed."
- During the quarter ended December 31, Endeavour, financial advisor to
Bisha Mining Share Company, a subsidiary of Nevsun Resources Ltd.,
arranged a US$89 million commitment from the Industrial Development
Corporation of South Africa towards the development of the Bisha
Project, located in Eritrea.
- Endeavour Financial was engaged by Dannemora Mineral AB as its
financial advisor in October, 2008 to assist in financing the
Company's Dannemora iron ore project, located in Sweden.
- Endeavour Financial is advising Rusoro Mining Ltd., who launched a
take-over bid for Gold Reserve Inc. on December 15, 2008.
- The current market environment will give rise to many opportunities
and accordingly the board has elected to suspend the monthly dividend
for the foreseeable future.
- On February 4, 2009 the Corporation closed an equity offering of
65 million units (CDN$1.77 per Unit; each unit consisting of one
ordinary voting share and one-half of one share purchase warrant) for
gross proceeds of CDN$115 million. Net proceeds from the offering
will be used for investments in the natural resource sector.
- Subsequent to the second quarter, Fiore Financial Corporation (a
Corporation led by Frank Giustra) entered into an agreement with
Endeavour to extend its existing exclusive agreement to January 31,
2012. Fiore Financial Corporation assists Endeavour in sourcing and
developing new investment opportunities.
Conference Call Details
- Management's discussion of the financial results for the quarter
ending December 31, 2008 will be webcast by V-Call on Monday,
February 9, 2009 at 11:00am Eastern Standard Time and can be accessed
from the Corporation's website at www.endeavourfinancial.com by
calling the operator at 201-689-8031 or toll free 1-877-407-8031
prior to the scheduled start time. The call will be archived for
later playback on Endeavour's website until February 9, 2010.
About Endeavour Financial Corporation
Endeavour is an independent merchant banking company focused on the
global natural resources sector. The Corporation offers advisory services in
project, corporate and debt capital markets; equity financings; mergers and
acquisitions; and strategic business development. Endeavour also provides
equity and bridge loans in support of clients, transactions, and other market
opportunities. Accessing its global industry networks, Endeavour creates and
launches new growth companies as both an advisor and investor.
Endeavour Financial Corporation is listed on the Toronto Stock Exchange,
symbol EDV. Listed warrants trade on the Toronto Stock Exchange, symbol
For additional information, please visit our corporate website at
www.endeavourfinancial.com. In order to access the Corporation's financial
statements directly, please click the following URL:
On behalf of Endeavour Financial Corporation
Chief Executive Officer
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. The foregoing
information may contain forward-looking statements relating to the future
performance of Endeavour Financial Corporation. Forward-looking statements,
specifically those concerning future performance, are subject to certain risks
and uncertainties, and actual results may differ materially. These risks and
uncertainties are detailed from time to time in the Corporation's filings with
the appropriate securities commissions.
For further information:
For further information: Dr. Sally Eyre, Director Marketing & Business
Development, Endeavour Financial, (604) 609-6129; Or Mr. Bill Koutsouras,
Executive Vice President and Chief Financial Officer, Endeavour Financial, +
377 97 98 7130; Or Vanguard Shareholder Solutions, 1-866-341-4111 or (604)
608-0824, Email: firstname.lastname@example.org