CALGARY, June 29, 2011 /CNW/ - NewNorth Projects Ltd. ("NewNorth")
(TSXV:NNP) today announced its financial results for the quarter ending
March 31, 2011.
Mr. Greg Herndier, President and Chief Executive Officer of NewNorth,
reports a net loss after tax of $347,000 which includes debenture
interest of $139,000.
After tax loss per share, basic and diluted is $0.03.
Select information for the period:
Subsequent to the first quarter of 2011 and as of the date of this
document, NewNorth has sold four units of the Vista Village project, a
condominium project in Red Deer, Alberta. The gross proceeds for these
sales were approximately $617,000. An additional 15 units have been
conditionally sold as of the date of this document.
NewNorth sold its 50% interest in a rental property in Yellowknife, NWT
on June 1, 2011.
At December 31, 2010, the Company's current ratio (current assets to
current liabilities) is 15.88:1 and the adjusted debt to equity ratio
is 0.48:1 which exceeds NewNorth's operating loan covenants
requirements of a current ratio not to be less than 1.25:1 and an
adjusted debt to equity ratio not to exceed 2:1.
Management believes that the value of the net assets of NewNorth
significantly exceeds the current share value.
Two of management's goals in 2011 are to lower the cost of operating by
paying out a portion of its debenture payable and to recapitalize the
Company. The above mentioned sales are the first step in the financial
restructuring being undertaken by management. These measures will
allow management to refocus its efforts on key development
NNP continues to add value to land holdings by obtaining the necessary
approvals. Having those approvals will allow NNP to begin to execute
development plans. NewNorth anticipates selling the balance of the
Sheep River project this year.
NewNorth is an integrated land and building development Corporation
operating in Alberta, the Northwest Territories and Nunavut.
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.
The contents of this release have not been approved or disapproved by
any securities authority or stock exchanges.
SOURCE NewNorth Projects Ltd.
For further information:
Mr. Greg N. Herndier, Chief Executive Officer or Mrs. Shannon Cook, Controller at (403)531-0280