MONTREAL, March 31 /CNW Telbec/ - For the three-month period ended January 31, 2010, MCO CAPITAL INC. ("MCO Capital" or "the Company"; ticker symbol MCO.H/NEX) did not record any income and incurred operating expenses of $40,200 consisting primarily of professional fees, as well as interest and bank fees. During the same period in 2009, the Company had recorded no income and incurred operating expenses of $9,655. Therefore, MCO closed the first quarter of fiscal 2010 with a net loss of $40,200 or $0.004 per share on a weighted average number of 10,321,729 outstanding Class B shares, compared with a net loss of $9,655 or $0.002 per share on 4,233,689 shares during the same quarter of the previous year.
The increased number of shares is attributable to the December 16, 2009 issuance of 6,088,040 Class B shares in connection with the Company's latest private placement and projected acquisition of IOU Central Inc., a company with a plan to operate an Internet-based platform in the United States that will facilitate transactions between registered lenders and borrowers. The transaction, which will constitute a reverse takeover of the Company (RTO), is scheduled to close in late May or early June 2010.
During the first quarter of fiscal 2009, operating activities used cash of $73,127, while the December 16, 2009, private placement of 6,088,040 Class B shares at $0.0825 per share generated proceeds of $502,263, which will serve to finance the expenses associated with the projected acquisition of IOU Central Inc. As a result of the various cash flows of the period, the Company's cash increased by a net amount of $429,136 to stand at $429,864 as at January 31, 2010, up from $729 on October 31, 2009.
At the end of the first quarter of fiscal 2010, total assets stood at $512,627 compared with $43,288 on October 31, 2009, including cash of $429,864. As at January 31, 2010, total liabilities, in the amount $238,039, consisted primarily of interest-free advances from the parent company. As a result of the December 16, 2009 private placement, shareholders' equity amounted to $274,588, as opposed to a shareholders' deficiency of $187,476 as at October 31, 2009.
SOURCE MCO CAPITAL INC.
For further information: For further information: Philippe Marleau, President, MCO Capital Inc., (514) 397-0188