CALGARY, April 26, 2012 /CNW/ - NewNorth Projects Ltd. ("NewNorth") (TSXV:NNP) today announced its financial results for the year ending December 31, 2011.
Mr. Greg Herndier, President and Chief Executive Officer of NewNorth, reports a net income after tax of $164,000 which includes debenture interest of $516,000.
After tax income per share, basic and diluted is $0.01.
- NewNorth sold all of the units of the Vista Village project, a condominium project in Red Deer, Alberta. The gross proceeds for these sales were $4,827,000. 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.
- In the third quarter, NewNorth sold the remaining portion of the Sheep River development project for $2,800,000.
- At December 30, 2011, the Company's current ratio (current assets to current liabilities) is 2.22:1 and the adjusted debt to equity ratio is 0.27:1 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, 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.
For further information:
please contact Mr. Greg N. Herndier, Chief Executive Officer or Mrs. Shannon Cook, Controller at (403)531-0280.