VANCOUVER, June 4, 2013 /CNW/ - The financial statements for Prima
Colombia Hardwood Inc. (TSXV:PCT) ("Prima" or the "Company") have been filed on SEDAR for the three months ended March 31, 2013,
however, no CEO or CFO Certifications were completed due to the
resignations of Donald Hayes, current Chairman of BC Ferries, as CEO
and Director, and Harold Hayes as COO, acting CFO and Director
effective May 21, 2013. Accordingly, the Company has been placed on the
British Columbia Securities Commission's list of Reporting Issuers in
default. Effective as at May 27, 2013, the Hayes' also terminated the
management services agreement between the Company and Hayes Forest
Services Limited under which they have claimed $825,000 (plus interest)
of management fees accrued since the Company ceased active operations.
The Company's advisors had attempted to negotiate terms for a
restructuring of the Company, but were unable to come to an agreement
with Donald Hayes, Harold Hayes and Hayes Forest Services Limited
(collectively, the "Hayes Group") based upon their stated requirement
that they continue as major shareholders in any restructured entity.
The remaining Board members are in process of appointing an interim
Board of Directors to review the Company's debts, obligations, and
shareholdings with a view to bringing the Company into regulatory
compliance and determining whether a reorganization can be completed in
order to preserve some value for the Company's current shareholders and
A loan of $3,496,000 plus interest of $962,000 remains outstanding to
Endeavour Capital Corporation ("Endeavour"). Endeavour has not yet
demanded payment in expectation that its only chance for recovery of a
portion of this cash would be through a restructuring of the Company.
The Company has been in the process of selling its remaining assets as
part of an organized wind down, as disclosed previously and in the most
recently filed financial statements.
This news release contains "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act
of 1995 and "forward-looking information" within the meaning of
applicable Canadian securities legislation. Often, but not always,
forward-looking information can be identified by the use of words such
as "plans", "expects" or "does not expect", "is expected", "estimates",
"intends", "anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might" or "will"
be taken, occur or be achieved.
There can be no assurance that the plans, intentions or expectations
upon which these forward-looking statements and information are based
will occur. Forward-looking statements and forward-looking information
are subject to a variety of known and unknown risks, uncertainties and
assumptions, including those discussed in Prima's quarterly and annual
management's discussion and analysis and under "Risk Factors" in
Prima's Annual Information Form dated April 30, 2012, which are
available at www.sedar.com under Prima's profile, and any of which may
cause the actual results, performance or achievements of Prima to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking information
contained in this news release.
The factors identified above are not intended to represent a complete
list of the factors that could affect Prima. Additional factors are
noted under the heading "Risk Factors" in the Annual Information Form dated April 30, 2012 available at
www.sedar.com under Prima's profile. Further, should one or more of
these risks or uncertainties materialize, or should assumptions
underlying the forward-looking information prove incorrect, actual
results, performance or achievement may vary materially from those
expressed or implied by the forward-looking information contained in
this news release. Forward-looking statements and information are based
on the beliefs, estimates and opinions of management at the date the
statements are made and are subject to change without notice. These
factors should be carefully considered and viewers are cautioned not to
place undue reliance on forward-looking information, which speaks only
as of the date of this news release. Other than as required by law,
Prima does not undertake to update forward-looking statements or
information if management beliefs, estimates or opinions or other
circumstances should change, or to reflect events or circumstances that
occur after the date of this news release or to reflect the occurrence
of unanticipated events. All forward-looking information attributable
to Prima herein is expressly qualified in its entirety by the
cautionary statements contained in or referred to herein.
Neither 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 news
SOURCE: Prima Colombia Hardwood Inc.
For further information:
Fiore Management & Advisory Corp.
Advisors to Prima Colombia Hardwood Inc.