TORONTO, Jan. 27 /CNW/ - Look Communications Inc. ("Look" or the
"Corporation") (TSX Venture: LOK and LOK.A) today reported its
operating and financial results for the first quarter of fiscal 2011,
ended November 30, 2010.
Recent operating and financial highlights:
On December 3, 2010, the Corporation and UBS agreed that, with effect
from January 1, 2011, the Corporation will no longer maintain the
prepaid annual Management Service Agreement ("MSA") advance of $2.4
million and this amount will commence being drawn down at approximately
$145,000 per month over the remaining term of the MSA. UBS will
continue to provide services to the Corporation pursuant to the MSA and
all other terms and conditions of the MSA will remain in effect until
May 19, 2012. The cash flow impact of this amendment is a reduction of
approximately $900,000 in fees from Look to UBS over the remaining term
of the MSA.
Cash and cash equivalents and short-term investments at November 30,
2010 totalled $26.6 million, which represents a decrease of $0.7
million from August 31, 2010. This decrease is due primarily to the
Corporation's losses from ongoing operations.
Operating expenses for the quarter ended November 30, 2010 totalled $1.2
million, a decrease of $1.7 million or 58.6 per cent from the $2.9
million incurred during quarter ended November 30, 2009.
The net loss for the quarter ended November 30, 2010 was $1.1 million,
or a basic loss per share of $0.01.
The Corporation continues to pursue opportunities to realize value from
its tax attributes; however after significant management effort, no
value was obtained for the $184.3 million of non-capital income tax
losses that expired at the end of December 2010. The Corporation's
remaining tax attributes of approximately $188.4 million may be
utilized by the Corporation in its future operations, or may be
utilized by a potential acquirer to offset income, provided certain
tests are satisfied including those related to change in control.
For further information on Look's financial results, please review the
Corporation's interim unaudited consolidated financial statements and
management's discussion and analysis of financial condition and results
of operations for the three months ended November 30, 2010 and 2009 as
well as the Corporation's annual audited consolidated financial
statements and management's discussion and analysis of financial
condition and results of operations for the years ended August 31, 2010
About Look Communications Inc.
Look's shares are listed on the TSX Venture Exchange under the symbols
"LOK" for Multiple Voting Shares and "LOK.A" for Subordinate Voting
Shares. Look's website may be found at www.look.ca.
The corporate information contained in this release includes
forward-looking statements regarding future events and the future
performance of Look that involve risks and uncertainties that could
cause actual results to differ materially. Assumptions used in the
preparation of such information, although considered reasonable by Look
at the time of preparation, may prove to be incorrect. The actual
results achieved may vary from the information provided herein and the
variations may be material. Consequently, there is no representation by
Look that actual results achieved will be the same in whole or in part
as those forecast.
Neither the TSX Venture Exchange nor its 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 Look Communications Inc.
For further information:
Grant McCutcheon, Director