Valucap Announces Third Quarter Results
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 02/13/12 -- Valucap Investments Inc. (TSX VENTURE: V) ("Valucap") announces results for its third quarter ended December 31, 2011.
Valucap's net loss for the nine month period ended December 31, 2011 was $1,194,272 as compared to a net loss of $598,300 for the same period in 2010. This increase in the loss is explained almost entirely by management's decision to take an impairment loss on its investment in 80/20 during the current quarter.
Due to the continued operating losses and cash requirements of 80/20 combined with the amount of third party debt and its associated terms, the Company determined that its equity position was completely impaired. As a result the Company has written down its remaining investment in 80/20 resulting in an impairment charge of $693,683 in the quarter. The Company also took a bad debt loss of $74,159 due from 80/20 for management fees. Subsequent to December 31, 2011 the company disposed of all of its shares and warrants of 80/20 to a third party for nominal consideration.
In October, 2011 a related company with an outstanding loan due from Valucap was assigned into bankruptcy. The trustee, on behalf of this company has indicated the intention to make demand of loans payable of $163,663. The Company has reclassified this debt and others from long term to short term and is currently in discussion with the trustee as well as with all debt holders regarding debt restructuring and funding of ongoing operations.
Valucap continues to invest in minority positions, preferably with strategic co-investors. The Company made several of those investments during the nine month period ended December 31, 2011:
These investments have been performing as planned and management believes they will provide the Company with a satisfactory return when sold in the future.
Valucap's financial statements and related management's discussion and analysis ("MD&A") for the three month and nine month periods ended December 31, 2011 are available to the public at and the highlights in this release should be read in conjunction with the detailed results and MD&A. The MD&A provides an analysis of comparisons with previous periods, trends affecting the business and risk factors.
About Valucap
Valucap is an investment issuer and is interested in making investments in emerging technologies and markets. Valucap intends to become a leading small cap Canadian equity company that specializes in investing in commercialized and undercapitalized companies that have high growth potential. Specifically, Valucap seeks to generate above average investment returns on its capital by providing "transaction driven" growth capital to micro and small cap companies which operate within preferred industry sector classifications. The common shares of Valucap are currently listed on the TSX Venture Exchange.
This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact, included herein, including without limitation, statements regarding future plans and objectives of Valucap, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
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.
Contacts:
Valucap Investments Inc.
Jeffrey S. Watts
President and Chief Executive Officer
1 (416) 364-2591
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Datum: 13.02.2012 - 22:03 Uhr
Sprache: Deutsch
News-ID 114048
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