Leader Capital Announces Filing of Amended Unaudited Interim Financial Statements and Management's Discussion and Analysis for the periods ended September 30, 2006 and December 31, 2006 Following Ontario Securities Commission Continuous Disclosure Review Process

    Listing: TSX Venture Exchange, Symbol "LDR"
    Issued and Outstanding Common Shares:  14,560,918

    TORONTO, Sept. 19 /CNW/ - Leader Capital Corp. ("Leader" or "the
Company") announced today that it has filed amended unaudited interim
financial statements for the six months ended September 30, 2006 and the nine
months ended December 31, 2006 as well as amended Management's Discussion and
Analysis ("MD&A") for such periods. The Chief Executive Officer and Chief
Financial Officer certifications in respect of Leader's filings for these
periods have also been re-filed. All of the re-filed documents are available
at www.sedar.com.
    The amended filings have been prepared pursuant to a review of the
Company's continuous disclosure record by staff of the Ontario Securities
Commission. The Company has been working to address all of the OSC comments
and inquiries.
    In addition to the deficiencies cited by the OSC pertaining to the
Company's original filings for the aforementioned periods, the Company
identified several adjustments during the course of the year-end audit as of
March 31, 2007 which it concluded should also be reflected in the September
30, 2006 and December 31, 2006 unaudited interim statements.
    While readers are advised to read the aforementioned re-filed documents
in their entirety, the principal amendments to such documents are summarized
as follows:

                            Amended Filing  Original Filing         Increase
    At and for the six
     months ended
     September 30, 2006
    Net loss                      (778,779)        (785,305)           6,526
    Working capital              4,293,360        4,304,065          (10,705)
    Capital assets                 190,885          143,618           47,267
    Long-term liabilities           64,277                -           64,277
    Shareholders' equity         6,681,498        6,580,056          101,442
    Loss per share                   (.054)           (.054)               -

                            Amended Filing  Original Filing         Increase
    At and for the nine
     months ended
     December 31, 2006
    Net income                     315,964          216,135           99,829
    Working capital              4,204,049        4,214,757          (10,708)
    Capital assets                 173,417          126,147           47,270
    Long-term liabilities           64,277                -           64,277
    Shareholders' equity         6,997,462        6,796,191          201,271
    Earnings per share                .022             .015             .007

    a.  The non-cash expense of $104,916 relating to the repricing of
        1,219,953 stock options from $1.30 per share to $0.60 per share (as
        approved by the shareholders at the Annual General Meeting in
        September 2006) is reflected in the amended statements. This expense
        was determined in accordance with the Black Scholes option-pricing

    b.  A capital asset and related long-term debt of $47,267 pertaining to
        an asset acquired in August 2006 are reflected in the amended
        statements. Previously the Company had reflected the transaction as
        an operating lease.

    c.  The Company has reflected an asset retirement obligation of $27,715
        in the amended filings pertaining to the oil and gas properties that
        it is developing.

    d.  The Company capitalized certain of its wind project costs as of
        March 31, 2007. These costs are direct costs associated with the
        Leader Resources wind site located in Bruce County, which is being
        positioned to pursue the Standard Offer Contract issued by the
        Government of Ontario. The Company has thus adopted this presentation
        as of September 30, 2006 and capitalized $101,442 in the quarter then
        ended and an additional $99,829 of costs for the quarter ended
        December 31, 2006. The SOC was released in mid-2006 and this affords
        the Company the specific opportunity to obtain long-term power
        purchase contracts if it submits a compliant proposal to the

    The adjustments to the footnotes to the unaudited interim financial
statements for the six months ended September 30, 2006 and the nine months
ended December 31, 2006 include:

        -  Expanded footnote disclosure on significant accounting policies
           including projects under development, oil and natural gas
           properties and asset retirement obligations.

        -  Revised footnote commentary on the agreement that the Company has
           struck with an arms-length party pertaining to the development of
           its St. Catharines, Ontario properties.

        -  Revisions to the Property and Equipment and Projects Under
           Development footnotes reflecting the changes cited above.

        -  Addition of a Long-Term Debt, Asset Retirement Obligation and
           Contributed Surplus footnote.

        -  Expanded commentary in the related party footnote.

    The adjustments to the MD&A for the six months ended September 30, 2006
and the nine months ended December 31, 2006 include new or expanded
commentaries on:

        -  Current wind development opportunities, the Government SOC and the
           capitalizing of direct wind project related costs.

        -  The Company's oil and gas properties.

        -  Related party disclosure.

        -  Stock-based compensation to include the non-cash cost of repricing
           the outstanding stock options as discussed above.

        -  Additional subsequent event disclosure at December 31, 2006.

    Finally, the Company has complied with the requirement to file via SEDAR
the contract that it executed with Enbridge in 2005 pertaining to the sale of
Leader Wind. A redacted version of this contract has now been filed via SEDAR
and is available at www.sedar.com. The Company notes that it had previously
publicly disclosed all material aspects of the transaction with Enbridge in
its interim and annual financial statements.


    "Magaly Bianchini"

    Statements in this news release that are not historical facts, including
statements about plans and expectations regarding properties, reserves,
transactions and opportunities, capital resources and future financial results
are forward-looking. Forward-looking statements involve risks and
uncertainties, which may cause the Company's actual results in future periods
to differ materially from those expressed. These uncertainties and risks
including changing gas and commodity prices and currency exchange rates,
demand for gas, lack of success of future exploration and development,
competition and other factors discussed form time to time in the Company's
filings with the Ontario Securities Commission.

    Neither the TSX Venture Exchange nor any securities regulatory authority
    has approved or disapproved of this news release.

For further information:

For further information: Magaly Bianchini at (telephone) (416) 304-1913

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890