CALGARY, Nov. 15, 2012 /CNW/ - NewNorth Projects Ltd. ("NewNorth") (TSXV:NNP) today announced its financial results for the quarter ending September 30, 2012.
Mr. Greg Herndier, President and Chief Executive Officer of NewNorth, reports a net loss after tax for the nine months ending September 30, 2012 of $1,095,000 which includes debenture interest of $23,000.
After tax loss per share, basic and diluted is $0.09.
- NewNorth received $500,000 in financing in July 2012 from one of the independent directors on NewNorth's Board of Directors. Full payment of the loan is required on January 03, 2013 with an option, at NewNorth's discretion, to extend the loan for six months longer. The interest rate on the loan is 10% per annum. As security for the loan, a mortgage was registered against the title to NewNorth's property in Cochrane, AB.
- NewNorth received a loan of $500,000 from an unrelated party in June 2012. The full amount of the loan is due on March 31, 2012. The interest rate on the loan is 10% per annum and the loan is unsecured.
- At September 30, 2012, the Company's current ratio (current assets to current liabilities) is 4.76:1 and the adjusted debt to equity ratio is 0.42:1 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.
NewNorth is an integrated land and building development corporation operating in Alberta and the Northwest Territories.
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.