TORONTO, Nov. 29, 2011 /CNW/ - Look Communications Inc. ("Look" or the
"Corporation") (NEX: LOK.H and LOK.K) today reported its operating and
financial results for the year ended August 31 2011.
Operating highlights included the following:
On June 3, 2011, the Corporation sold its land and building for an
aggregate consideration of $3.05 million;
On July 6, 2011, the Corporation issued a Statement of Claim (the
"Claim") in the Ontario Superior Court of Justice (the "Court") against
certain former directors and certain former officers of Look in
connection with the payment of approximately $20.0 million of
"restructuring awards" paid in 2009 (the "Sale Awards"), of which
approximately $15.7 million was paid to the directors and senior
officers named in the Claim (or their personal holding companies, as
applicable) from the net proceeds of approximately $64.0 million
realized by the Corporation on the sale of its spectrum licence in
2009. The former officers and directors named in the Claim collectively
resigned effective July 21, 2010. None of the allegations in the Claim
have been proven before the Court and none of the defendants have filed
a statement of defence. Look intends to vigorously pursue its claims
against the former directors and former officers named in the Claim (as
well as their personal holding companies, as applicable) for payments
and decisions which the Corporation believes were not in Look's or its
shareholders' best interests; and
The Corporation continues to pursue opportunities to realize the value
of its remaining material non-cash assets, which includes approximately
$165 million in tax attributes.
Financial highlights included the following:
Cash and cash equivalents and short-term investments at August 31, 2011
totalled $27.5 million, which represents an increase of $0.2 million
from August 31, 2010. This increase is due primarily to the sale of
Look's land and building in fiscal 2011 offset mainly by losses from
Operating expenses before amortizations and restructuring charges for
fiscal 2011 totalled $4.3 million, a decrease of $1.4 million or 23.7%
from the $5.7 million incurred during fiscal 2010; and
The net loss for the year ended August 31, 2011 was $3.0 million, or a
basic loss per share of $0.02.
The Corporation continues to pursue opportunities to realize value from
its tax attributes. The Corporation's remaining tax attributes of
approximately $165 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 annual audited consolidated financial statements and
management's discussion and analysis of financial condition and results
of operations for the years ended August 31, 2011 and 2010.
About Look Communications Inc.
Look's shares are listed on the NEX under the symbols "LOK.H" for
Multiple Voting Shares and "LOK.K" 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 NEX nor its Regulation Services Provider (as that term is
defined in the policies of the NEX) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE Look Communications Inc.
For further information:
Chief Executive Officer and Director