CALGARY, May 2 /CNW/ - NewNorth Projects Ltd. (NNP - TSXV) today announced its financial results for the year ended December 31, 2010.

Mr. Greg Herndier, President and Chief Executive Officer of NewNorth, reports a net loss after tax of $2,636,000 which includes debenture interest of $546,000.  The results include a negative revaluation adjustment to the Vista Village project of $1,312,000, a loss on an investment in subsidiary of $253,000 and a negative revaluation adjustment of vacant land held in Inuvik, NT of $173,000.

After tax loss per share, basic and diluted is $0.22.

Select information for the year:

  • 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.
  • A Normal Course Issuer Bid ("NCIB") was entered into in January, 2010.  58,000 shares have been purchased in 2010 at an average price of 0.44.  Management believes that the value of NewNorth significantly exceeds the current stock prices.

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.  In order to achieve these goals, it is management's intention to sell properties that have achieved their maximum value and to sell Vista Village, a condominium project in Red Deer, Alberta.  These measures will allow management 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 will begin selling the Sheep River Cove project, Phase 4, in 2011. 

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:

please contact Mr. Greg N. Herndier, Chief Executive Officer or Mrs. Shannon Cook, Controller at (403)531-0280.


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