CALGARY, Dec. 22, 2014 /CNW/ - Northern Frontier Corp. (TSXV: FFF) ("Northern Frontier" or the "Corporation") provides operational and dividend policy update.
The Corporation was just advised by a key client that they have decided to defer a significant amount of fiscal 2015 work planned with several service providers including Northern Frontier. These activities include operating maintenance, maintenance capital and new project work. Due to the lack of notice, Northern Frontier has not had time to back fill the operational capacity that has been created by this deferral. It is unclear as to how long this client will defer these activities, accordingly management is in the process of taking the necessary steps to adjust its cost structure commensurate with the expected reduced operating activity levels.
In light of this operational change and the impact that uncertain oil commodity markets is having on visibility towards industry activity levels, the Board of Directors (the "Board") has decided to take defensive steps to protect the Corporation's financial position and has suspended the dividend policy to preserve cash on hand. The Board will revisit the dividend policy when visibility on industry activity levels improves.
About Northern Frontier Corp.
Northern Frontier's strategic objective is to create a large industrial and environmental services business through a buy and build growth strategy. Currently, the Corporation provides civil construction and excavation services to the industrial industry, primarily in the in situ Oilsands region south of Fort McMurray, Alberta and bulk water and fluids transfer logistic services in western Canada.
The Corporation's common shares and common share purchase warrants are listed on the TSX Venture Exchange under the trading symbol "FFF" and "FFF.WT", respectively.
This news release includes certain statements that constitute forward-looking statements under applicable securities legislation. All statements other than statements of historical fact are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", or the negative of these terms or other comparable terminology. These forward-looking statements include, among other things, statements in respect of:
- expectations of future financial performance of the Corporation; and
- dividend policy.
These statements are only predictions and are based upon current expectations, estimates, projections and assumptions, which the Corporation believes are reasonable but which may prove to be incorrect and therefore such forward-looking statements should not be unduly relied upon. In making such forward-looking statements, assumptions have been made regarding, among other things, industry activity, the state of financial markets, business conditions, continued availability of capital and financing, future oil and natural gas prices and the ability of the Corporation to obtain necessary regulatory approvals. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements.
By its nature, forward-looking information involves numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur. Investors are cautioned that forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. The Corporation has no obligation to update any forward-looking statements set out in this news release, except as required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Northern Frontier Corp.
For further information: Chris Yellowega - President and Chief Executive Officer, Phone: 587.350.7232, Email: [email protected]; or Monty Balderston - Executive Vice President and Chief Financial Officer, Phone: 587.350.7231, Email: [email protected]; or Northern Frontier Corp., 400, 435 - 4th Avenue SW, Calgary, AB T2P 3A8, www.nfcorp.ca