Noveko International Inc. Announces Results for the Second Quarter Ended December 31, 2008



    
                             46% Revenue Growth
             Ongoing Product and Market Development Initiatives

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    EKO/TSX
    

    MONTREAL, Feb. 12 /CNW Telbec/ Noveko International Inc. ("the Company")
today announces the financial results for its second quarter ended December
31, 2008.
    "Whereas our second-quarter revenues totaled $5.6 million, up by 46% over
the second quarter of the previous year due mainly to our new subsidiaries,
the group's organic growth and improvement in profitability remain our
priorities and we are confident we are on the right track in this regard,"
indicated André Leroux, Chairman of the Board and Chief Executive Officer of
the Company.

    
    Operating Results Highlights
    (in thousands of $, except per-share amounts) (unaudited)

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                                 Three Months                  Six Months
                              2008(1)       2007          2008(1)       2007
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    Revenues                 5,569         3,809         9,846         6,611
    Gross margin             2,272         1,612         3,721         2,556
    Loss before
     amortization,
     financial expenses
     and income taxes(2)    (4,952)       (2,780)      (10,874)       (4,732)
    Net loss                (6,941)       (2,962)      (13,480)       (5,157)
    Comprehensive loss      (5,506)       (2,795)      (12,463)       (5,093)
    Loss per Class A share
     (basic and diluted)     (0.10)        (0.06)        (0.20)        (0.10)
    Weighted average number
     of Class A shares
     outstanding (in
     thousands)             66,886        53,728        66,214        52,713
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    (1) The consolidated financial statements for the three and six-month
        periods ended December 31, 2008 include the financial statements of
        the Company and its wholly-owned subsidiaries Noveko Inc., ECM, BLI,
        SyMa, Micron-Air, Magnum, Noveko Trading, Noveko Taiwan, Noveko
        Algérie, Unitam, Purer Life and U-Bond.
    (2) Including stock-based compensation charges of 3,207, 1,813, 6,278 and
        2,378 for the respective periods of 2008 and 2007.
    

    "Our strategy of teaming up with solid distribution partners has started
to yield results, as attested by the air filter orders obtained through
Monitrol during the quarter. The market development of our teams in the field
looks promising as our antimicrobial filtration solutions, virtually unknown a
few months ago in the farming community, are attracting growing interest in
North America, South America, Europe and Asia," added André Leroux.
    "Our marketing team representatives who participated in the Arab Health
Conference held in Dubai last January, which is the most important event in
the healthcare field in the Middle East, are for their part very confident
that this market holds potential for our products, specifically our ultrasound
scanners, Azuro(TM) sanitizers and Noveko(TM) antimicrobial face masks." André
Leroux pointed out that, regarding the face masks, "we are currently
conducting the supplementary tests required to demonstrate a "4 log reduction"
bio-efficacy, subsequent to our December meeting with the FDA. We plan to file
our test results by the end of March 2009 with the FDA, which will then study
the file and communicate with us in due course. We remain optimistic as to FDA
approval of the Noveko(TM) 3xEZ antimicrobial surgical mask."

    Analysis of Operating Results

    Consolidated revenues amounted to $5.6 million in the second quarter, up
by 46.2% over the corresponding quarter of the previous year. This $1.8
million increase is due primarily to the contribution of the new subsidiaries
Groupe Conseils Micron-Air Inc. ("Micron-Air"), Purer Life Technology Co.,
Ltd. ("Purer Life"), Magnum Pharmaceutics Inc. ("Magnum") and SARL Noveko
Algérie ("Noveko Algérie") for the full quarter. For the first six months of
the current fiscal year, consolidated revenues totaled $9.8 million, up by
$3.2 million or 48.9% over the first half ended December 31, 2007. This
increase is due to the aforementioned factors, to which was added the
contribution of Bolduc Leroux Inc. ("BLI") which posted significant revenue
growth during the first quarter.
    For the second quarter and first six months of the current fiscal year,
selling and administrative expenses amounted to $4.2 million and $8.1 million
respectively, up by 60.3% and 65.8% over the corresponding periods of the
previous year. These increases are due primarily to the total payroll and
operating expenses of the subsidiaries acquired in the past quarters in
Canada, Algeria and Taiwan, and the expenses related to the marketing of the
derivative products from the antimicrobial filtration technology.
    Stock-based compensation represented an expense of $3.2 million for the
second quarter and $6.3 million for the first six months, compared with $1.8
million and $2.4 million respectively for the corresponding periods of the
previous year. During the first half, the Company granted, mainly in the
context of the recent acquisitions, stock options allowing the purchase of
2,710,000 Class A shares at a weighted average exercise price of $2.88 per
share with a vesting period extending over 12 to 30 months.
    Considering the aforementioned factors, the loss before amortization,
financial expenses and income taxes amounted to $5.0 million for the second
quarter, up by $2.2 million over the corresponding quarter of the previous
year. For the first six months, it totaled $10.9 million, an increase of $6.1
million over the corresponding period of the previous year.
    Amortization expenses amounted to $0.8 million for the second quarter and
$1.2 million for the first six months, up by $0.5 million and $0.7 million
respectively over the corresponding periods of the previous year. These
differences are due mainly to the acquisitions closed in the past quarters.
Financial expenses amounted to $1.0 million for the second quarter and $1.4
million for the first six months, up by $1.1 million and $1.3 million
respectively over the corresponding periods of the previous year. These
differences are due primarily to losses on foreign exchange contracts of $1.5
million in the second quarter and $1.7 million in the first half, partly
offset by foreign exchange gains of $0.5 million for the second quarter and
$0.3 million for the first half of the current fiscal year.
    The net loss amounted to $6.9 million for the second quarter, up by $4.0
million over the corresponding period of the previous year, mainly on account
of the aforementioned factors. Considering a net change in unrealized gains on
translation of financial statements of self-sustaining foreign operations of
$1.4 million, compared with $0.2 million for the same quarter of the previous
year, a net loss of $5.5 million represented the comprehensive loss for the
second quarter, compared with $2.8 million for the corresponding quarter of
the previous year. For the first six months, a net loss of $12.5 million
represented the comprehensive loss, considering a net change in unrealized
gains on translation of financial statements of self-sustaining foreign
operations of $1.0 million - compared with a net loss of $5.1 million which
represented the comprehensive loss for the first half of the previous year,
considering a net change in unrealized gains on translation of financial
statements of self-sustaining foreign operations of $0.1 million.
    The loss per Class A share (basic and diluted) amounted to $0.10 on a
weighted average of 66,886,157 outstanding shares for the second quarter,
compared with a loss per share of $0.06 on a weighted average of 53,727,729
shares for the corresponding quarter of the previous year. The increased
weighted average number of outstanding shares is due to the Company's various
share issues during the quarter. For the first six months, the loss per share
(basic and diluted) increased to $0.20 from $0.10 per share in the first half
of last year.

    Principal Cash Flows

    Operating activities, before net change in non-cash working capital, used
cash flows of $3.5 million in the second quarter, compared with a cash outflow
of $0.9 million for the corresponding quarter of the previous year. This
change is explained primarily by the increase in the net loss, less the
adjustments for stock-based compensation, accreted interest on secured
convertible debentures, amortization and net change in non-cash working
capital. Net change in non-cash working capital represented a cash outflow of
$4.1 million, compared with a cash outflow of $1.6 million for the second
quarter of the previous year. This variation is due primarily to the increase
in accounts receivable and inventories. During the first six months, operating
activities, before net change in non-cash working capital, used cash flows of
$6.4 million, compared with a cash outflow of $2.2 million for the first half
of the previous year. This variation can be explained by the aforementioned
factors. Net change in non-cash working capital represented a cash outflow of
$4.9 million, compared with a cash outflow of $2.2 million for the first six
months of the previous year, this variation being due to the increase in
accounts receivable and inventories.
    Financing activities used cash flows of $0.5 million in the second
quarter, whereas they provided cash flows of $3.0 million in the corresponding
quarter of the previous year. The Company repaid debt, bank advances and paid
interest on convertible debentures for an amount of more than $0.8 million and
the exercise of stock options provided cash flows of $0.3 million, whereas in
the second quarter of the previous year, warrants and stock options had been
exercised for an amount of approximately $3.0 million. During the first six
months, financing activities provided cash flows of $3.2 million, remaining
relatively equivalent to those for the first half of the previous year. It is
to be noted that during the first quarter ended September 30, 2008, the
Company had issued 1,1 million Class A shares that were subscribed by the
owner of U-Bond Inc. ("U-Bond"), pursuant to the Company's acquisition of
U-Bond on August 1st, 2008. This issue represented an amount of approximately
$3.4 million. In addition, warrants were exercised for an amount of $0.2
million. Net changes in bank advances represented approximately $0.3 million,
which amount was used primarily to finance material for BLI orders in
progress. Finally, the Company made a net principal repayment on long-term
debt of approximately $0.2 million during the first half of the fiscal year.
    Investing activities provided cash flows of $7.5 million in the second
quarter, whereas they used cash flows of $0.2 million in the corresponding
quarter of the previous year. This change is due primarily to the fact that
the Company received short-term investments of $37.5 million and acquired
short-term investments of $29.6 million, representing an actual receipt of
$7.9 million, compared with $0.3 million in the corresponding quarter of the
previous year. During the first six months, investing activities used cash
flows of $3.4 million, compared with a cash outflow of $1.1 million for the
first half of the previous year. A cash consideration of $5.9 million was paid
for the acquisition of Noveko Algérie, Micron-Air, Unitam, Purer Life and
U-Bond in the first quarter. The purchase of fixed assets used cash flows of
$0.5 million, to which was added an amount of $0.3 million for the acquisition
of intangible assets and capitalized development costs of $0.2 million. The
Company also received short-term investments of approximately $57.8 million
and acquired short-term investments of $54.3 million, representing an actual
receipt of $3.5 million for the six-month period ended December 31, 2008.
    During the first six months of the current fiscal year, aggregate cash
inflows and outflows used net cash flows of $11.5 million, compared with $2.3
million in the first half of the previous year. As at December 31, 2008, cash
and cash equivalents totaled $0.1 million, compared with $0.4 million a year
earlier.

    
    Financial Position

    Balance Sheet Highlights as at December 31, 2008
    (in thousands of $)
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                                                   December 31,      June 30,
                                                          2008          2008
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    Total assets                                        67,427        62,858
    Shareholders' equity                                53,561        49,773
    Total interest-bearing debt(1)                       7,546         7,860
    Cash, cash equivalent, cash in trust
     and short-term equivalent                          11,442        25,386
    Working capital                                     20,746        30,537
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    (1) Including long-term debt and its current portion, bank advances and
        bank loans, as well as convertible debentures.
    

    The changes in the Company's financial position between June 30, 2008 and
December 31, 2008 notably reflect the period's results and the acquisition of
Noveko Algérie, Micron-Air, Unitam, Purer Life and U-Bond. These transactions
explain the increase in fixed assets, intangible assets and goodwill over June
30, 2008. As at December 31, 2008, total assets amounted to $67.4 million, up
by 7.3% or $4.6 million over June 30, 2008. Working capital stood at $20.7
million for a current ratio of 4.5:1, compared with $30.5 million and a 5.6:1
ratio as at June 30, 2008. Shareholders' equity totaled $53.6 million,
compared with $49.8 million as at June 30, 2008, primarily reflecting the
$10.5 million increase in capital stock subsequent to the Class A share issues
during the first six months of the current fiscal year and the $6.0 million
increase in contributed surplus reflecting the stock-based compensation
expense, less the $13.5 million increase in the deficit.
    Total interest-bearing debt amounted to $7.6 million as at December 31,
2008, compared with $7.9 million as at June 30, 2008. This $0.3 million
reduction in indebtedness stemmed from a decrease of more than $0.7 million in
convertible debentures due to the conversion of debentures for a total
principal amount of $1 million into 800,000 Class A shares during the period
and the $0.3 million decrease in bank advances and bank loans, whereas
long-term debt including the current portion increased by $0.7 million
subsequent to the acquisitions closed in the first quarter.

    Ongoing Development Initiatives

    The Company's primary objectives are to grow its business and improve its
profitability. It does not intend to make any other acquisitions in the short
term, but is rather focusing on integrating the recently acquired entities in
order to take advantage of product and market development synergies. However,
the Company remains on the lookout for partnership opportunities to stimulate
its product development and marketing, especially in the medical and
environmental fields. Targeted initiatives have also been taken within the
group to optimize its cost structure.

    
    - The results of the already obtained Noveko(TM) antimicrobial air
      filter orders will materialize in upcoming quarters.

    - Negotiations are still underway between the Company and Taiwan High
      Speed Rail Corporation to conclude a longer-term agreement to supply
      all the filters for all of this customer's high-speed trains.

      Alain Bolduc, President and Chief Operating Officer of the Company,
      pointed out in this regard: "Other railway companies are also showing
      an interest in this new application of our antimicrobial filtration
      technology. The potential winning of a contract with Taiwan High Speed
      Rail Corporation could open the door to other markets for the
      Company's products."

    - The integration of the antimicrobial filtration technologies of
      Noveko Inc. ("Noveko") with Purer Life's membranes and the filtration
      systems produced by Micron-Air will allow the Company to penetrate new
      markets in the near term.

    - The activities related to the sanitizers marketed under the Azuro(TM)
      brand, formerly ensured by Laboratoire SyMa Inc. ("SyMa"), are now
      integrated with Noveko. The Azuro(TM) products are achieving
      breakthroughs in the hospital and institutional fields. The Company is
      currently focusing efforts on these markets. It also plans to take
      advantage of its antimicrobial face mask distribution networks to
      distribute the Azuro(TM) products, notably in the medical field.

    - The Company is in discussion with potential partners in view of
      producing and marketing its antimicrobial face masks on a global scale.

    - The Company's new subsidiaries, Noveko Taiwan, Noveko Algérie and
      Unitam, are also involved in marketing the Azuro(TM) products and
      Noveko(TM) antimicrobial face masks.

    - The subsidiary S.A.S. E.C.M. is carrying on its efforts to market its
      new generation of ultrasound scanners designed for use in human and
      veterinary medicine.
    

    Profile

    Noveko International Inc. offers innovative health and environmental
protection solutions with the objective of improving collective well-being.
The Company, through its subsidiaries, specializes in the following business
segments: the development and marketing of products in the biomedical and
environmental fields, specifically face masks, air filters and other products
with antimicrobial properties - the development, manufacturing and marketing
of medical equipment, primarily portable real-time ultrasound scanners for use
in human and veterinary medicine and - the custom processing and distribution
of steel products, including downdraft particle extraction tables.

    Certain statements set forth in this press release constitute
forward-looking statements. In some cases, these statements are identified by
the use of terms such as "may", "could", "might", "intend", "should",
"expect", "project", "plan", "believe", "estimate" or other comparable
variants. These statements are based on the information available at the time
they are written, on assumptions made by management and on the expectations of
management, acting in good faith, regarding future events, including those
relating to economic conditions, fluctuations in exchange rates and operating
expenses, and the absence of unusual events entailing supplementary
expenditures. Although management considers these assumptions and expectations
reasonable based on the information available at the time they are written,
they could prove inaccurate. Forward-looking statements are also subject, by
their very nature, to known and unknown risks and uncertainties such as those
related to the industry, acquisitions, labor relations, credit, key officers,
supply and product liability. The actual results of Noveko International Inc.
could differ materially from those indicated or underlying these
forward-looking statements. The reader is therefore recommended not to unduly
rely on these forward-looking statements. Forward-looking statements do not
reflect the potential impact of special items, any business combination or any
other transaction that may be announced or occur subsequent to the date
hereof. The Company undertakes no obligation to update or revise the
forward-looking statements to account for new events or new circumstances,
except where provided for by applicable legislation.

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    The Management's Report, consolidated financial statements and
    accompanying notes for the quarter ended December 31, 2008 will be filed
    on SEDAR (www.sedar.com).
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    Consolidated balance sheets

    As at December 31, 2008 and June 30, 2008

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                                                  December 31        June 30
                                                         2008           2008
    -------------------------------------------------------------------------
                                                   (unaudited)      (audited)
    Assets

    Current assets:
      Cash and cash equivalents                  $    139,469   $ 11,594,335
      Deposit for acquisition                          74,720      1,274,625
      Short-term investments                       11,227,498     12,516,884
      Accounts receivable                           5,438,794      5,092,191
      Inventories                                   8,971,132      5,868,045
      Prepaid expenses                                847,177        820,119
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                                                   26,698,790     37,166,199

    Fixed assets                                    8,816,018      7,206,885
    Intangible assets                              10,727,568      2,572,372
    Other assets                                    1,112,214      1,442,283
    Future income taxes                               551,242        762,311
    Goodwill                                       19,521,522     13,708,240

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                                                 $ 67,427,354   $ 62,858,290
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    Liabilities and shareholders' equity

    Current liabilities:
      Bank advances                              $  1,395,032   $  1,112,665
      Bank loan                                             -        561,435
      Accounts payable and accrued liabilities      3,749,048      4,318,727
      Current portion of long term debt               808,959        636,116
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                                                    5,953,039      6,628,943

    Long-term debt                                  3,602,652      3,086,827
    Secured convertible debentures                  1,739,102      2,462,909
    Future income taxes                             2,571,808        906,464
    Shareholders' equity:
      Capital stock                                80,632,736     70,084,061
      Portion of secured convertible debentures
       included in equity                             372,473        611,537
      Warrants                                              -         85,983
      Contributed surplus                          14,001,695      7,967,778
      Accumulated other comprehensive income        1,364,609        347,359
      Deficit                                     (42,810,760)   (29,323,571)
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                                                   53,560,753     49,773,147
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                                                 $ 67,427,354   $ 62,858,290
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    Consolidated statements of operations

    Six and three month periods ended December 31, 2008 and 2007
    (unaudited)

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                              Three months                   Six months
                           2008           2007           2008           2007
    -------------------------------------------------------------------------

    Revenues       $  5,568,547   $  3,808,735   $  9,845,643   $  6,611,083
    Cost of sales     3,296,104      2,196,698      6,124,856      4,054,739
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                      2,272,443      1,612,037      3,720,787      2,556,344

    Operating
     expenses:
      Administrative
       and selling
       expenses       4,170,268      2,601,532      8,097,556      4,883,077
      Stock-based
       compensation   3,207,094      1,813,239      6,277,917      2,378,406
      Research and
       development      261,148        220,255        674,057        279,745
      Research and
       development
       tax credits     (414,341)      (242,587)      (454,341)      (252,587)
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                      7,224,169      4,392,439     14,595,189      7,288,641
    -------------------------------------------------------------------------
    Loss before
     amortization,
     financial
     expenses and
     income taxes    (4,951,726)    (2,780,402)   (10,874,402)    (4,732,297)
    Amortization        752,023        256,358      1,211,014        491,106
    Financial
     expenses         1,046,403        (56,402)     1,404,315         39,222
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                      1,798,426        199,956      2,615,329        530,328
    -------------------------------------------------------------------------

    Loss before
     income taxes    (6,750,152)    (2,980,358)   (13,489,731)    (5,262,625)
      Income taxes:
      Current
       (recovered)      113,897          2,058         (8,846)         2,058
      Future             77,253        (20,013)          (453)      (107,203)
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                        191,150        (17,955)        (9,299)      (105,145)
    -------------------------------------------------------------------------

    Net loss       $ (6,941,302)  $ (2,962,403)  $(13,480,432)  $ (5,157,480)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and
     diluted
     earnings
     per share     $      (0.10)  $      (0.06)  $      (0.20)  $      (0.10)
    -------------------------------------------------------------------------
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    Weighted
     average
     number of
     outstanding
     shares basic
     and diluted     66,886,157     53,727,729     66,214,199     52,712,744
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    Consolidated statements of comprehensive loss

    Six and three month periods ended December 31, 2008 and 2007
    (unaudited)

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                              Three months                   Six months
                           2008           2007           2008           2007
    -------------------------------------------------------------------------

    Net loss       $ (6,941,302)  $ (2,962,403)  $(13,480,432)  $ (5,157,480)

    Other
     comprehensive
     loss, net of
     income taxes:

      Change in
       unrealized
       gains on
       translation
       of financial
       statements
       of self-
       sustaining
       foreign
       operations     1,435,062        167,440      1,017,250         64,084
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    Comprehensive
     loss          $ (5,506,240)  $ (2,794,963)  $(12,463,182)  $ (5,093,396)
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    Consolidated statements of deficit and contributed surplus

    Six-month periods ended December 31, 2008 and 2007
    (unaudited)

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                                                  December 31    December 31
                                                         2008           2007
    -------------------------------------------------------------------------

    DEFICIT

    Deficit, beginning of period                 $(29,323,571)  $(12,672,254)
    Restatement related to the new
     accounting policies                               49,243          3,161
    -------------------------------------------------------------------------

    Restated balance                              (29,274,328)   (12,669,093)
    Net loss                                      (13,480,432)    (5,157,480)
    Share issuance fees                               (56,000)       (25,090)

    -------------------------------------------------------------------------
    Deficit, end of period                       $(42,810,760)  $(17,851,663)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    CONTRIBUTED SURPLUS

    Contributed surplus, beginning of period     $  7,967,778   $  1,325,504
    Fair value of stock options granted             6,277,917      2,378,406
    Fair value of stock options exercised            (244,000)      (304,568)

    -------------------------------------------------------------------------

    Contributed surplus, end of period           $ 14,001,695   $  3,399,342
    -------------------------------------------------------------------------
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    Consolidated statements of cash flows

    Six and three months periods ended December 31, 2008 and 2007
    (unaudited)

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                              Three months                   Six months
                           2008           2007           2008           2007
    -------------------------------------------------------------------------

    Cash flows
     from operating
     activities:
      Net loss      $(6,941,302)  $ (2,962,403)  $(13,480,432)  $ (5,157,480)
      Adjustments
       for :
        Future
         income
         taxes           77,253        (20,013)          (453)      (107,203)
        Accreted
         interest
         on secured
         convertible
         debentures      63,721        113,465        137,310        261,374
        Stock-based
         compen-
         sation       3,207,094      1,813,239      6,277,917      2,378,406
        Amortization    752,023        256,358      1,211,014        491,106
        Gain on fair
         value of
         short-term
         investments     (1,538)       (77,345)        (2,821)       (31,591)
        Unrealised
         gain on
         currency
         contracts     (625,938)             -       (549,305)             -
        Gain on
         disposal
         of fixed
         assets          (7,231)             -         (7,231)             -
        Foreign
         exchange
         loss
         (gain)           2,733            252           (545)         1,835
    -------------------------------------------------------------------------

                     (3,473,185)      (876,447)    (6,414,546)    (2,163,553)
    Net change in
     non-cash
     working
     capital         (4,059,859)    (1,550,432)    (4,881,379)    (2,177,086)
    -------------------------------------------------------------------------
                     (7,533,044)    (2,426,879)   (11,295,925)    (4,340,639)

    Cash flows
     from financing
     activities :
      Net changes
       in bank
       advances        (606,998)       346,813       (314,242)       278,597
      Increase
      in bank loan            -          2,620              -        144,280
      Principal
      repayment
      on long-
      term debt        (180,868)      (209,418)      (336,608)      (526,863)
      Interest paid
       on secured
       convertible
       debentures       (39,748)      (119,400)       (86,164)      (176,147)
      Proceeds of
       Class A
       shares and
       warrants
       issued less
       related
       expenses         348,000      2,998,385      3,926,775      3,382,117
    -------------------------------------------------------------------------
                       (479,614)     3,019,000      3,189,761      3,101,984

    Cash flows
     from investing
     activities:
      Business
       acquisition,
       including bank
       acquired and
       overdraft
       assumed
       (note 4)          (3,395)             -     (5,906,797)      (525,403)
      Acquisition of
       fixed assets    (222,428)       (93,816)      (505,333)    (1,408,277)
      Proceeds from
       disposal of
       fixed assets       8,859              -          8,859              -
      Government
       assistance
       related to
       acquisition of
       fixed assets           -         47,500              -         47,500
      Acquisition of
       intangible
       assets          (169,181)        (2,250)      (276,041)        (9,750)
      Proceeds from
       disposal of
       short-term
       investments   37,526,590     19,256,074     57,755,393     20,259,564
      Acquisition
       of short-
       term
       investments  (29,589,165)   (18,982,559)   (54,305,532)   (18,982,559)
      Acquisition
       of other
       assets                 -       (276,647)             -       (276,647)
      Deposit for
       acquisition       (8,900)             -         (2,135)             -
      Deferred
       development
       costs            (86,671)      (105,919)      (171,217)      (164,949)
    -------------------------------------------------------------------------
                      7,455,709       (157,617)    (3,402,803)    (1,060,521)

    Foreign
     exchange
     loss on
     cash in
     foreign
     currencies          79,425         12,630         54,101            722
    -------------------------------------------------------------------------

    Net change
     in cash
     and cash
     equivalents       (477,524)       447,134    (11,454,866)    (2,298,454)
     Cash and cash
     equivalents,
     beginning of
     period             616,993        (77,094)    11,594,335      2,668,494
    -------------------------------------------------------------------------

    Cash and cash
     equivalents,
     end of period  $   139,469    $   370,040   $    139,469   $    370,040
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Cash flows related to operating activities include interest paid for
    $84,596 ($217,488 in 2007) and income taxes received for $99,853 (paid
    for $114,089 in 2007).
    




For further information:

For further information: Chantal Vennat, Director, Investor Relations
and Corporate Communications, Noveko International Inc., (514) 875-0606;
http://www.noveko.com

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Noveko International Inc.

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