NEX Symbol: COF.H
TORONTO, Feb. 14 /CNW/ - Coventree Inc. (NEX: COF.H) ("Coventree" or the
"Company") today announced its financial results for the three months
ended December 31, 2010. All amounts are reported in Canadian dollars.
Coventree's net loss for the three months ended December 31, 2010 was
$3.3 million, compared to a net loss of $1.4 million for the same
period in the previous year.
Total revenue for the three months ended December 31, 2010 was $0.3
million, which was the same as total revenue for the same period in the
previous year. The Company's primary source of revenue was interest
income from investments.
Operating expenses for the three months ended December 31, 2010 were
$3.0 million, which represents an increase of $1.5 million compared to
the same period in the previous year. This increase is a result of,
among other things, a $1.9 million increase in legal and consulting
fees related to the Ontario Securities Commission ("OSC") hearing that
commenced earlier in 2010, offset by small decreases in both
compensation and benefits expenses and administration expenses, as the
Company continues to wind down its operations. Legal and consulting
fees related to the OSC hearing for the three months ended December 31,
2010 were $2.6 million, compared to $0.7 million in the same period in
the previous year.
For the three months ended December 31, 2010, there was a $0.6 million
unrealized pre-tax loss on the Company's investment in shares of Xceed
Mortgage Corporation compared to an unrealized pre-tax loss of $0.1
million for the three months ended December 31, 2009.
The Company's Management Discussion and Analysis and unaudited
consolidated financial statements for the three months ended December
31, 2010 will be available under the "Coventree Owners" section of the
Company's website at www.coventree.ca and on SEDAR at www.sedar.com.
Coventree is continuing with its previously announced plans to wind down
the Company and its operations. In that regard, at the Company's annual
and special meeting of shareholders on June 30, 2010, shareholders
approved a special resolution authorizing the winding up of the Company
and the distribution of its remaining assets, if any, to shareholders.
The winding up of the Company will commence and become effective at a
time to be determined by the Company's board of directors. The board
intends to set the effective date as promptly as practicable following
the final determination of the OSC proceeding. However, the timing of
any formal winding up of the Company and the amount and timing of any
distribution of funds to shareholders under such a winding up cannot be
determined at this time. A number of factors, some of which are beyond
the Company's control, will affect the timing of, or the amount of
funds available for distribution upon, a formal winding up of the
Company, including the timing and outcome of the decision to be issued
by the OSC in respect of the hearing described above. A final
determination of the OSC proceeding is the principal matter to be
resolved prior to the implementation by the Company of its winding up
and the distribution of its remaining assets. In that regard, the OSC
hearing ended on December 9, 2010, and the OSC reserved its decision at
that time. There can be no assurance as to when the OSC will issue its
decision in the matter.
This press release includes certain forward-looking statements relating
to the Company's expectations to wind down its operations and to
implement a formal winding up of the Company. These statements can be
identified by the expressions "will" and "intends". These
forward-looking statements are not historical facts but reflect
Coventree's current expectations regarding future events based on
information currently available to Coventree.
These forward-looking statements are subject to a number of known and
unknown risks, uncertainties and assumptions which may be substantial.
Many factors could cause actual results or events to differ materially
from current expectations that may be expressed or implied by such
forward-looking statements, including, without limitation, the various
matters discussed under "Risks and Uncertainties" contained on pages 10
to 12 of the Company's Management Discussion and Analysis for the three
months ended December 31, 2010 which is available under the Company's
profile on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or
should assumptions underlying the forward-looking statements prove
incorrect, the Company may not be able to wind down its operations or
implement a formal winding up of the Company in the near future or at
all; the amount of funds available to be distributed to shareholders
pursuant to such a winding up could be significantly reduced and/or the
timing of the distribution of such funds could be significantly
delayed. These factors should be considered carefully and prospective
investors should not place undue reliance on the forward-looking
statements. These forward-looking statements are made as of the date of
this press release and Coventree does not intend, and does not assume
any obligation, to update or revise these forward-looking statements,
except as required by law.
This press release is intended for distribution in Canada only.
Neither TSX Venture Exchange nor it 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 Coventree Inc.
For further information:
Craig Armitage, The Equicom Group Inc.
Tel: (416) 815-0700 x278
- or -
Ani Hotoyan-Joly, Coventree Inc.
Tel: (416) 572-2721