Coventree Reports Fiscal 2011 Financial Results

    




 NEX Symbol: COF.H  

 TORONTO, Dec. 16, 2011 /CNW/ - Coventree Inc. (NEX: COF.H) ("Coventree"  or the "Company") today announced its financial results for the fiscal  year ended September 30, 2011. All amounts are reported in Canadian  dollars. 

 Coventree's net loss for the fiscal year ended September 30, 2011 was  $6.4 million, compared to a net loss of $14.2 million for the previous  fiscal year. 

 Total revenue for the year was $1.2 million compared to $2.1 million for  the previous fiscal year.  The primary source of revenue in 2011 was  interest income earned on cash and cash equivalents.  Revenue for the  previous year included a $1.0 million insurance recovery under a  directors and officers insurance policy. 

 Operating expenses for the 2011 fiscal year were $6.9 million compared  to $13.9 million for the previous year.  This decrease is mainly the  net result of a decrease in consulting and legal fees related to the  Ontario Securities Commission ("OSC") proceeding of $8.5 million as the  initial hearing ended in December 2010, and a provision recorded by the  Company in respect of OSC sanctions in the amount of $2.25 million.   Consulting and legal fees related to the OSC proceeding for the 2011  fiscal year were $2.7 million, compared to $11.2 million in the  previous year. 

 For the twelve months ended September 30, 2011, there was a $0.7 million  unrealized pre-tax loss on its investment in shares of Xceed Mortgage  Corporation compared to an unrealized pre-tax loss of $2.0 million for  the twelve months ended September 30, 2010. 

 As at September 30, 2011, the Company had cash and cash equivalents of  $71.0 million, or approximately $4.68 per share.  As at that date, the  Company's book value per share was also approximately $4.68 per share. 

 The Company's Management Discussion and Analysis and audited  consolidated financial statements for the fiscal year ended September  30, 2011 will be available on the Company's website at www.coventree.ca and on SEDAR at www.sedar.com. 

 Coventree expects to implement a formal winding up of the Company. In  that regard, at the Company's annual and special meeting of  shareholders on June 30, 2010, shareholders approved a special  resolution authorizing the winding up of the Company and the  distribution of its remaining assets, if any, to shareholders.  The  winding up of the Company will commence and become effective at a time  to be determined by the Company's board of directors.  However, the  timing of any formal winding up of the Company and the amount and  timing of any distribution of funds to shareholders under such a  winding up cannot be determined at this time. A number of factors, some  of which are beyond the Company's control, could affect the timing of,  or the amount of funds available for distribution upon, a formal  winding up of the Company.  

 Forward-Looking Statements 

 This press release includes certain forward-looking statements relating  to the Company's expectations to wind down its operations and to  implement a formal winding up of the Company. These statements can be  identified by the expressions "will", "expects" and "intends". These  forward-looking statements are not historical facts but reflect  Coventree's current expectations regarding future events based on  information currently available to Coventree. 

 These forward-looking statements are subject to a number of known and  unknown risks, uncertainties and assumptions which may be substantial.  Many factors could cause actual results or events to differ materially  from current expectations that may be expressed or implied by such  forward-looking statements, including, without limitation, the various  matters discussed under "Risks and Uncertainties" contained on pages 10  to 11 of the Company's Management Discussion and Analysis for the fiscal year  ended September 30, 2011 which is available under the Company's profile  on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or  should assumptions underlying the forward-looking statements prove  incorrect, the Company may not be able to wind down its operations or  implement a formal winding up of the Company in the near future or at  all; and the amount of funds available to be distributed to  shareholders pursuant to such a winding up could be significantly  reduced and/or the timing of the distribution of such funds could be  significantly delayed.  These factors should be considered carefully  and prospective investors should not place undue reliance on the  forward-looking statements. These forward-looking statements are made  as of the date of this press release and Coventree does not intend, and  does not assume any obligation, to update or revise these  forward-looking statements, except as required by law. 

 This press release is intended for distribution in Canada only. 

 Neither TSX Venture Exchange nor it 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. 



Coventree Inc.


CONTACT:  Craig Armitage, The Equicom Group Inc.Tel: [phone] x278Email: [e-mail]-or-Ani Hotoyan-Joly, Coventree Inc.Tel: [phone]Email:  [e-mail] 


    

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