TORONTO, ON and HOUSTON, TX, Sept. 17 /CNW/ - Northstar Healthcare Inc. (TSX:NHC) today announced that it has closed out its position in foreign currency exchange contracts, thereby eliminating any future financial risk related to changes in the value of the Canadian dollar versus the US dollar.
Northstar entered into the contracts at the time of the Company's initial public offering, in order to hedge currency exposure which could arise from the payment of Canadian dollar dividends on its common shares, while the Company's revenues are generated in United States dollars.
The hedge is no longer required and represented a potential liability that now has been eliminated. It also removes the required recognition of unrealized gains or losses resulting from differences between the Canadian and US dollar foreign exchange spot rates and the exchange rate under the Company's currency instruments.
In closing out its contracts, Northstar will realize a one-time loss of approximately $0.3 million.
About Northstar Healthcare Inc.
Northstar owns and/or manages ambulatory surgery centres in the United States, focusing initially on Houston and other metropolitan areas in Texas. The Company currently holds interests in two ambulatory surgery centres in Houston - a 70% partnership interest in The Palladium for Surgery - Houston and a 60% partnership interest in Medical Ambulatory Surgical Suites. In addition, Northstar manages an ambulatory surgery centre in Dallas.
Northstar was founded and sponsored by Donald Kramer, M.D. and Stewart A. Feldman. Mr. Feldman also served as the co-principal and Chairman and Chief Executive Officer of Healthcare Ventures, Ltd., which sponsored Northstar, with Dr. Kramer serving as its President.
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to business of Northstar Healthcare Inc. (the "Company") and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. These risks and uncertainties are discussed in the Company's regulatory filings available on the Company's web site at www.Northstar-Healthcare.com or at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances.
SOURCE Northstar Healthcare Inc.
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