TORONTO, May 30, 2013 /CNW/ - SWEF TERRAWINDS RESOURCES CORP. (the "Company") announced today that it has filed with Canadian securities regulators its unaudited interim financial statements and Management's Discussion and Analysis ("MD&A") for the three month periods ended March 31, 2013 and 2012. These documents will be available at www.sedar.com and www.sweflp.com.
On January 16, 2008, March 10, 2008, April 29, 2008, August 29, 2008, November 13, 2008, December 1, 2008, March 26, 2009 and July 24, 2009 management provided instructions to shareholders regarding the process for submitting tax indemnity claims and the status of the tax indemnity claims process. Distributions of the funds held in trust by the tax indemnity payment agent have continued to date, and the relevant taxation authorities have continued to provide individual reassessments for the 2005 tax year which allow shareholders to make their tax indemnity claims. Further information is available at www.sweflp.com and www.terida.com/paymentagent.
Recent Developments - Termination of Tax Indemnity Fund and Distribution to Investors
On March 27, 2013, the Company announced that the period for filing tax indemnity claims will expire on July 31, 2013. If investors intend to file tax indemnity claims, they are urged to do so immediately. A tax indemnity claim received after July 31, 2013 will not be processed. Only investors who have been reassessed by the Canada Revenue Agency and who are required to pay tax in respect of the 2005 year are eligible to submit a tax indemnity claim (if such investors have not already submitted a tax indemnity claim). Investors who have not been reassessed in respect of the 2005 year are not required to take any action.
After July 31, 2013, the Company will redeem for cancellation the issued and outstanding non-voting common shares of the Company. The redemption amount per non-voting common share is an amount equal to: (A) the total amount of cash or cash equivalents standing to the credit of SWEF Terrawinds, less (i) the amount required to redeem the outstanding preferred shares in the capital of SWEF Terrawinds (being $100 in aggregate); and (ii) an amount equal to the existing and contingent liabilities determined by the directors of SWEF Terrawinds in good faith; divided by (B) the total number of outstanding non-voting common shares. The redemption is expected to occur prior to the end of 2013.
Results of Operations
Net loss for the three months ended March 31, 2013 was $119 thousand compared to a net loss of $146 thousand for the same period in fiscal 2012. The decrease in net loss of $27 thousand is due primarily to a decrease in tax indemnity payments and related deferred tax recovery when comparing the three months ended March 31, 2013 to the same period ended March 31, 2012.
Interest income for the three months ended March 31, 2013 was $20 thousand, which is comparable to $21 thousand for the same period in fiscal 2012.
Professional fees and other expenses for the three months ended March 31, 2013 were $148 thousand compared to $124 thousand for the same period in fiscal 2012. The increase in professional fees is attributable to higher legal costs and accounting support costs incurred in the three months ended March 31, 2013 in anticipation of the termination of the tax indemnity claims process and wind-up of the Company.
Deferred income tax recovery for the three months ended March 31, 2013 was $40 thousand, compared to a recovery of $43 thousand for the same period in fiscal 2012. The deferred income tax recovery for the three months ended March 31, 2013 arises due to the tax indemnity claims made in the period. The recovery decreased by $3 thousand due to fewer tax indemnity claims made in 2013 when compared to 2012.
Forward Looking Statements
This press release contains forward looking information within the meaning of applicable securities laws, including forward looking information relating to: the future performance of the Company; and the expected timing of the redemption of the Shares. All forward-looking statements are inherently uncertain and actual results may differ materially from the assumptions, estimates or expectations reflected or contained in the forward looking statements. We consider the assumptions on which these forward looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect. These forward looking statements involve a number of risks, uncertainties and assumptions, including the risk of future tax assessments, litigation or other unanticipated expenses.
The forward looking information contained in this press release is given as of May 30, 2013. The Company disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information, future events or otherwise, except as required by law. These risks may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These cautionary statements expressly qualify all forward looking statements attributable to the Company.
SOURCE: SWEF TERRAWINDS RESOURCES CORP.
For further information:
W. Judson Martin, Chairman SWEF Terrawinds Resources Corp. email@example.com