NewNorth announces Results for the Quarter ended September 30, 2010
Calgary, Nov. 10, 2010 – NewNorth Projects Ltd. (NNP – TSXV) today announced its financial results for the quarter ended September 30, 2010.
Mr. Greg Herndier, President and Chief Executive Officer of NewNorth, reports a net loss after tax of $1,213,000 which includes debenture interest of $417,000. After tax loss per share, basic and diluted is $0.10.Select information for the year:
• NewNorth continues to find itself in a good balance sheet position, exceeding its operating loan covenants (current ratio not to be less than 1.25:1 and adjusted debt to equity not to exceed 2:1). At September 30, 2010, the Company’s current ratio is 14.85:1 and the adjusted debt to equity ratio is 0.43:1.
• In the first quarter of 2010, NewNorth added revenue producing commercial assets to its portfolio by purchasing Chilkat Enterprises Ltd. Chilkat’s core asset is land and buildings located on Old Airport Road in Yellowknife, NT. The property is fully leased. This acquisition strengthens NewNorth’s position in the Northwest Territories and increases its rental portfolio.
• A Normal Course Issuer Bid (“NCIB”) was entered into in January, 2010. 36,000 shares have been purchased in 2010 at an average price of 0.46. Management believes that the value of NewNorth significantly exceeds the current stock prices.
NNP continues to add value to land holdings by obtaining the necessary approvals. Having those approvals will allow NNP to begin to execute development plans.
NewNorth is an integrated land and building development Corporation operating in Alberta, the Northwest Territories and Nunavut.
The TSX Venture Exchange does not accept responsibility for the adequacy of accuracy of this release.
The contents of this release have not been approved or disapproved by any securities authority or stock exchanges.
For further information:
Mr. Greg N. Herndier, Chief Executive Officer or Mrs. Shannon Cook,Controller at (403)531-0280