NewNorth Announces Results for the Quarter Ending June 30, 2012
August 28 2012 - 5:20PM
PR Newswire (Canada)
CALGARY, Aug. 28, 2012 /CNW/ - NewNorth Projects Ltd. ("NewNorth")
today announced its financial results for the quarter ending June
30, 2012. Mr. Greg Herndier, President and Chief Executive Officer
of NewNorth, reports a net loss after tax for the six months ending
June 30, 2012 of $671,000 which includes debenture interest of
$23,000. After tax loss per share, basic and diluted is $0.06.
Select information: -- NewNorth sold its 50% interest in a
development project in Yellowknife, NWT on June 1, 2011. The gross
proceeds of the sale were $978,000. -- NewNorth received a loan of
$500,000 from an unrelated party. The full amount of the loan is
due on November 12, 2012. The interest rate on the loan is 10% per
annum and the loan is unsecured. -- NewNorth received $500,000 in
financing in July 2012 from one of the independent directors on
NewNorth's Board of Directors. Full payment of the loan is required
on January 03, 2013 with an option, at NewNorth's discretion, to
extend the loan for six months longer. The interest rate on the
loan is 10% per annum. As security for the loan, a mortgage was
registered against the title to NewNorth's property in Cochrane,
AB. -- NewNorth discontinued its Employee Share Purchase Plan in
July 2012. -- At June 30, 2012, the Company's current ratio
(current assets to current liabilities) is 8.02:1 and the adjusted
debt to equity ratio is 0.33:1 which exceeds NewNorth's operating
loan covenants requirements of a current ratio not to be less than
1.25:1 and an adjusted debt to equity ratio not to exceed 2:1.
Management believes that the value of the net assets of NewNorth
significantly exceeds the current share value. NewNorth is an
integrated land and building development corporation operating in
Alberta and the Northwest Territories. Neither the 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. The
contents of this release have not been approved or disapproved by
any securities authority or stock exchanges. NewNorth Projects Ltd.
CONTACT: For additional information, please contact Mr. Greg N.
Herndier,ChiefExecutive Officer or Mrs. Shannon Cook, Controller at
(403)531-0280.
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