/THIS PRESS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY./
NEX Symbol: COF.H
TORONTO, April 29 /CNW/ - Coventree Inc. (NEX: COF.H) ("Coventree" or
the "Company") today announced its financial results for the three and
six months ended March 31, 2011. All amounts are reported in Canadian
Coventree's net loss for the three and six months ended March 31, 2011
was $0.1 million and $3.3 million, respectively, compared to a net loss
of $2.3 million and $3.7 million, respectively, in the same periods in
Total revenue for the three and six months ended March 31, 2011 was $0.3
million and $0.6 million respectively, and was the same for the
corresponding periods in 2010. The Company's primary source of revenue
during the three and six months ended March 31, 2011 was interest
income earned on cash and cash equivalents held by the company.
Operating expenses for the three and six months ended March 31, 2011
were $0.6 million and $3.6 million, respectively, which represents a
decrease of $2.2 million and $0.7 million, respectively, compared to
the same periods in the previous year. This decrease is mainly the
result of the decrease in legal and consulting fees related to the OSC
proceeding as the proceeding ended in December 2010. Legal and
consulting fees related to the OSC hearing for the three and six months
ended March 31, 2011 were nil and $2.6 million, respectively, compared
to $2.2 million and $2.9 million, respectively, in the previous year.
For the three and six months ended March 31, 2011, there was a $0.3
million unrealized pre-tax gain and $0.3 million unrealized pre-tax
loss, respectively, on the Company's investment in shares of Xceed
Mortgage Corporation compared to an unrealized pre-tax gain of $0.4
million and $0.3 million, respectively, for the three and six months
ended March 31, 2010.
The Company's Management Discussion and Analysis and unaudited
consolidated financial statements for the three and six months ended
March 31, 2011 will be available under the "Coventree Owners" section
of the Company's website at www.coventree.ca and on SEDAR at www.sedar.com.
Coventree expects to implement a formal winding up of the Company. In
that regard, at the Company's annual and special meeting of
shareholders on June 30, 2010, shareholders approved a special
resolution authorizing the winding up of the Company and the
distribution of its remaining assets, if any, to shareholders. The
winding up of the Company will commence and become effective at a time
to be determined by the Company's board of directors. The board
intends to set the effective date as promptly as practicable following
the final determination of the OSC proceeding. However, the timing of
any formal winding up of the Company and the amount and timing of any
distribution of funds to shareholders under such a winding up cannot be
determined at this time. A number of factors, some of which are beyond
the Company's control, will affect the timing of, or the amount of
funds available for distribution upon, a formal winding up of the
Company, including the timing and outcome of the decision to be issued
by the OSC in respect of the hearing described above. A final
determination of the OSC proceeding is the principal matter to be
resolved prior to the implementation by the Company of its winding up
and the distribution of its remaining assets. In that regard, the OSC
hearing ended on December 9, 2010, and the OSC reserved its decision at
that time. There can be no assurance as to when the OSC will issue its
decision in the matter.
This press release includes certain forward-looking statements relating
to the Company's expectations to wind down its operations and to
implement a formal winding up of the Company. These statements can be
identified by the expressions "will", "expects" and "intends". These
forward-looking statements are not historical facts but reflect
Coventree's current expectations regarding future events based on
information currently available to Coventree.
These forward-looking statements are subject to a number of known and
unknown risks, uncertainties and assumptions which may be substantial.
Many factors could cause actual results or events to differ materially
from current expectations that may be expressed or implied by such
forward-looking statements, including, without limitation, the various
matters discussed under "Risks and Uncertainties" contained on pages 10
to 12 of the Company's Management Discussion and Analysis for the three
and six months ended March 31, 2011 which is available under the
Company's profile on SEDAR at www.sedar.com. Should one or more of
these risks or uncertainties materialize, or should assumptions
underlying the forward-looking statements prove incorrect, the Company
may not be able to wind down its operations or implement a formal
winding up of the Company in the near future or at all; the amount of
funds available to be distributed to shareholders pursuant to such a
winding up could be significantly reduced and/or the timing of the
distribution of such funds could be significantly delayed. These
factors should be considered carefully and prospective investors should
not place undue reliance on the forward-looking statements. These
forward-looking statements are made as of the date of this press
release and Coventree does not intend, and does not assume any
obligation, to update or revise these forward-looking statements,
except as required by law.
Neither TSX Venture Exchange nor it Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Coventree Inc.
For further information:
Craig Armitage, The Equicom Group Inc.
Tel: (416) 815-0700 x278
Ani Hotoyan-Joly, Coventree Inc.
Tel: (416) 572-2721