Coventree Reports Second Quarter 2011 Financial Results

TORONTO, April 29 /CNW/ -- 
/THIS PRESS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY./


NEX Symbol: COF.H  


TORONTO, April 29 /CNW/ - Coventree Inc. (NEX: COF.H) ("Coventree" or
 the "Company") today announced its financial results for the three and
 six months ended March 31, 2011. All amounts are reported in Canadian
 dollars.


Coventree's net loss for the three and six months ended March 31, 2011
 was $0.1 million and $3.3 million, respectively, compared to a net loss
 of $2.3 million and $3.7 million, respectively, in the same periods in
 2010.


Total revenue for the three and six months ended March 31, 2011 was $0.3
 million and $0.6 million respectively, and was the same for the
 corresponding periods in 2010.  The Company's primary source of revenue
 during the three and six months ended March 31, 2011 was interest
 income earned on cash and cash equivalents held by the company.


Operating expenses for the three and six months ended March 31, 2011
 were $0.6 million and $3.6 million, respectively, which represents a
 decrease of $2.2 million and $0.7 million, respectively, compared to
 the same periods in the previous year. This decrease is mainly the
 result of the decrease in legal and consulting fees related to the OSC
 proceeding as the proceeding ended in December 2010. Legal and
 consulting fees related to the OSC hearing for the three and six months
 ended March 31, 2011 were nil and $2.6 million, respectively, compared
 to $2.2 million and $2.9 million, respectively, in the previous year.


For the three and six months ended March 31, 2011, there was a $0.3
 million unrealized pre-tax gain and $0.3 million unrealized pre-tax
 loss, respectively, on the Company's investment in shares of Xceed
 Mortgage Corporation compared to an unrealized pre-tax gain of $0.4
 million and $0.3 million, respectively, for the three and six months
 ended March 31, 2010.


The Company's Management Discussion and Analysis and unaudited
 consolidated financial statements for the three and six months ended
 March 31, 2011 will be available under the "Coventree Owners" section
 of 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.  The board
 intends to set the effective date as promptly as practicable following
 the final determination of the OSC proceeding.  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, will affect the timing of, or the amount of
 funds available for distribution upon, a formal winding up of the
 Company, including the timing and outcome of the decision to be issued
 by the OSC in respect of the hearing described above.  A final
 determination of the OSC proceeding is the principal matter to be
 resolved prior to the implementation by the Company of its winding up
 and the distribution of its remaining assets.  In that regard, the OSC
 hearing ended on December 9, 2010, and the OSC reserved its decision at
 that time.  There can be no assurance as to when the OSC will issue its
 decision in the matter.


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 12 of the Company's Management Discussion and Analysis for the three
 and six months ended March 31, 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; 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.





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.


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p Craig Armitage, The Equicom Group Inc.br/ Tel: [phone] x278br/ Email: a href="mailto:[e-mail]"[e-mail]/abr/ -or-br/ Ani Hotoyan-Joly, Coventree Inc.br/ Tel: [phone]br/ Email:  a href="http://[e-mail]"ani@c/aa href="mailto:[e-mail]"oventree.ca/a /p 

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