TORONTO, Nov. 27 /CNW/ - TriNorth Capital Inc. ("Trinorth") (TSX-V: TRT) today announced its unaudited financial results for the three and nine months ended September 30, 2009.
During the third quarter, Trinorth posted a net loss of $156,004 compared to a net loss of $1.47 million in the third quarter of 2008. The net loss was due to decreases in valuations of private companies held in the portfolio, Trinorth's share of loss in equity accounted investments and realized losses on the disposal of marketable securities. These losses were largely offset by a realized gain on the disposal of investments and an increase in value of marketable securities. Loss per common share was $0.001 in the third quarter compared to net loss of $0.010 during the third quarter of 2008. Trinorth had cash and cash equivalents of $459,253 at the end of the third quarter.
For the nine months ended September 30, 2009, Trinorth experienced a net loss of $3.63 million compared to a net loss of $663,170 in the first nine months of 2008. The net loss was primarily due to writedowns on investments and losses on dispositions. Net loss per common share was $0.024 for the first nine months of 2009 compared to net loss of $0.004 in the first nine months of 2008.
Total assets at September 30, 2009, stood at $8.75 million as compared to $12.9 million at December 31, 2008.
During the third quarter of 2009, Feronia Inc., an agriculture company that Trinorth founded in 2008, completed a US$6.3 million round of financing. The proceeds of the financing were used to acquire ownership of Unilever plc's interest in Plantations et Huileries du Congo, a 100 year old palm oil plantation in the Democratic Republic of Congo. Since acquiring its stake in PHC, Feronia has begun refurbishment of the plantation and its infrastructure to bring it back into production. Progress since September includes upgrading communications infrastructure, financial systems and accounting procedures, commencing refurbishment of the existing mill, negotiating transportation contracts, developing an operational plan, evaluating various manufacturers of farming equipment, surveying the land and testing the soil. Feronia will require additional funds in the near term to continue these operations, and is currently in discussions for additional financing.
Subsequent to the end of the third quarter, the shareholders of Nyah Resources Corp. approved a proposal to acquire all of the shares of Russo-Forest Corp. Subject to approval of the transaction by the TSX Venture Exchange, the combined company will be renamed Russo-Forest Corp. and trade under the symbol "SAW".
During the quarter, Trinorth wrote down its investment in Saber Energy Corp. as an arms length financing was completed at a lower valuation than Trinorth's carrying value.
The portfolio is fully invested at this time.
The Manager will hold a conference call Wednesday, December 9, 2009 at 10:00 a.m. to provide investors and their advisors with an update on the activity in the investment portfolio to be followed by a question and answer session. Call in details:
Dial in number: (416) 695-7806 / (888) 789-9572
TriNorth is a Canadian-based investment company that invests in a diversified portfolio of companies to generate long-term capital growth for shareholders. TriNorth takes an active interest in its investee companies from the earliest stages, providing strategic and financial counsel, support and direction to assist in their growth and success. TriNorth's investment strategy includes structuring and initiating deals focused on particular resources, themes or regions as well as launching the development of businesses in select industries by providing assistance with the hiring of management teams, providing seed capital and facilitating IPOs. All investment activities of TriNorth are managed by Lawrence Asset Management Inc, a leading Canadian alternative investment asset manager.
Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding the stated use of proceeds; plan of operations and comparative advantages; and benefits of this investment. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, regulatory risks, risks inherent in foreign operations, commodity prices, competition, and investments having no history of operations. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
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 release."
SOURCE TriNorth Capital Inc.
For further information: For further information: (416) 362-6283, Catherine Stretch, Lawrence Asset Management Inc., Toronto, Canada, email@example.com, www.trinorthcapital.com