NewNorth announces results for the quarter ending September 30, 2011

CALGARY, Nov. 16, 2011 /CNW/ - NewNorth Projects Ltd. ("NewNorth") (TSXV:NNP) today announced its financial results for the nine months ending September 30, 2011.

Mr. Greg Herndier, President and Chief Executive Officer of NewNorth, reports a net loss after tax of $1,303,000 which includes debenture interest of $403,000.

After tax loss per share, basic and diluted is $0.11.

Select information:

  • NewNorth has sold all of the units of the Vista Village project, a condominium project in Red Deer, Alberta. The gross proceeds for these sales were $4,839,870. Of those proceeds, approximately $705,930 came from the redemption of debentures payables. The debentures were redeemed at face value.
  • NewNorth sold its 50% interest in a rental property in Yellowknife, NWT on June 1, 2011 for $342,087.
  • NewNorth has sold the remaining portion of the Sheep River development project for $2,800,000.  The transaction is expected to close November 30, 2011.
  • At September 30, 2011, the Company's current ratio (current assets to current liabilities) is 1.77:1 and the adjusted debt to equity ratio is 0.36:1 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 of assets are part of the financial restructuring being undertaken by management. Once the restructuring process has taken place, management will be able to refocus its efforts on key development opportunities.

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 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


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