TORONTO, Dec. 13 /CNW/ - Northern Financial Corporation (TSX: NFC)
("Northern" or the "Company") responded today to a request from the
Investment Industry Regulatory Organization of Canada ("IIROC") to
comment on the recent appreciation in the Northern share price from the
$0.08 closing price on December 6 to a $0.25 level in trading today.
Northern previously announced on November 16 an agreement in principle
with the holders of $3,163,000 of its debentures to repay the total
principal amount by a combination of cash and by conversion into common
shares. Upon repayment of the debentures, Northern will have no debt
other than approximately $300,000. Northern also announced on November
22 the filing of a preliminary short form prospectus with certain
securities regulatory authorities relating to a financing of up to
$5,000,000 in order to fund the retirement of the debentures and for
general corporate and working capital purposes.
As announced by the TMX Group Inc. on November 3, 2010, the Toronto
Stock Exchange (the "TSX") is reviewing the common shares of Northern
with respect to meeting the continued listing requirements. Northern
was granted 120 days to regain compliance with the requirements.
Northern's non-compliance related to its publicly held market
capitalization (which does not include the market capitalization
relating to the insiders of Northern) being less than the minimum
publicly held market capitalization required by the TSX. If the
debenture restructuring is completed, Northern will request the TSX to
confirm compliance with the continued listing requirements.
Northern's failure to maintain full compliance with the listing
requirements may have contributed in part to a decline in its share
price of $0.185 from November 2 to $0.08 on December 6.
Other than as stated in this press release and previous press releases,
Northern is not aware of any corporate developments to account for the
recent price increase from $0.08 on December 6 to the $0.25 level in
today's trading. It should be noted that the 200 day moving average
for Northern's share price is $0.25. Management believes that Northern
shares are substantially undervalued at 0.6 times Enterprise Value to
Revenue compared to its peer group of small cap investment banks valued
at an average of 2.2 times Enterprise Value to Revenue.
Northern has 13,518,717 shares issued and outstanding as at December 13,
About Northern Financial Corporation
Northern Financial Corporation wholly owns Northern Securities Inc., a
full service investment dealer that provides financial advisory
services to retail and institutional clients and investment banking
services to small capitalization companies.
The Toronto Stock Exchange does not accept responsibility for the
adequacy or accuracy of this news release. This press release may
contain forward-looking statements with respect to the Company, its
operations, strategy, financial performance and condition. These
statements generally can be identified by use of forward looking words
such as "may", "will", "expect", "estimate", "anticipate", intends",
"believe" or "continue" or the negative thereof or similar variations.
The actual results and performance of the Company discussed herein
could differ materially from those expressed or implied by such
statements. Such statements are qualified in their entirety by the
inherent risks and uncertainties surrounding future expectations.
Important factors that could cause actual results to differ materially
from expectations include, among other things, general economic and
market factors, competition, changes in government regulations and the
factors described under "Risk Factors" in the Management's Discussion
and Analysis and Filing Statement of the Company which are available at
www.sedar.com. The cautionary statements qualify all forward-looking
statements attributable to the Company and persons acting on their
behalf. Unless otherwise stated, all forward-looking statements speak
only as of the date of this press release and the Company has no
obligation to update such statements.
SOURCE Northern Financial Corporation
For further information: For further information:
|Vic Alboini |
Chairman and CEO
| || || || ||or |
| || || || ||Doug Chornoboy|
Senior Vice President and CFO