MONTREAL, June 17 /CNW Telbec/ - For the three-month period ended April 30, 2010, MCO CAPITAL INC. ("MCO Capital" or "the Company"; ticker symbol MCO.H/NEX) did not record any income and incurred operating expenses of $46,977 consisting primarily of professional fees, as well as interest and bank fees. During the same quarter in 2009, the Company had recorded no income and incurred operating expenses of $10,416. Therefore, MCO closed the second quarter of fiscal 2010 with a net loss of $46,977 or $0.004 per share on a weighted average number of 10,321,729 outstanding Class B shares, compared with a net loss of $10,416 or $0.002 per share on 4,233,689 shares during the same quarter of the previous year.
For the six-month period ended April 30, 2010, MCO did not record any income and incurred operating expenses totaling $87,177, compared with no income and operating expenses of $20,071 for the same period in 2009. MCO's year-to-date net loss thus amounted to $87,177 or $0.008 per share on a weighted average number of 10,321,729 shares for the first half of the current fiscal year, compared with a net loss of $20,071 or $0.005 per share on 4,233,689 shares during the same period of the previous year.
The increased number of shares is attributable to the December 16, 2009 private placement 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 which currently operates a loan platform in the United States. The transaction, which will constitute a reverse takeover of the Company (RTO), is expected to close during the summer of 2010.
Since the beginning of fiscal 2010, operating activities used total cash of $114,034, 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 six-month period, the Company's cash increased by a net amount of $388,230 since the beginning of fiscal 2010, to stand at $388,959 as at April 30, 2010, up from $729 on October 31, 2009.
At the end of the second quarter of fiscal 2010, total assets stood at $479,899 compared with $43,288 on October 31, 2009, including cash of $388,958. As at April 30, 2010, total liabilities, in the amount of $252,288, consisted primarily of $200,000 interest-free advances from the parent company, as well as accounts payable and accrued liabilities. As a result of the December 16, 2009 private placement, shareholders' equity amounted to $227,611 as at April 30, 2010, 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