E.G. Capital Inc.
NEX BOARD : EGC.H

October 30, 2009 18:49 ET

E.G. Capital Inc. Announces Results for the Three Months Ended August 31, 2009

BROSSARD, QUEBEC--(Marketwire - Oct. 30, 2009) - E.G. Capital Inc. (NEX BOARD:EGC.H), ("E.G. Capital"), formally National Construction Inc., today announces results for the three months ended August 31, 2009.

Comparison of the three months ended August 31, 2009 and August 31, 2008
Revenue was $nil for the three month period ended August 31, 2009 as compared to $nil for the same period last year. Administrative Expenses were $11,658 for the three months ended August 31, 2009 as compared to $42,824 for the same period last year. For the three months ended August 31, 2009, the $11,658 included approximately $4,000 in professional and advisory expenses and approximately $8,000 in regulatory related filing expenses, consulting, and sundry administrative costs. For the three months ended August 31, 2008, the $42,824 included approximately $21,000 in professional and advisory expenses and approximately $21,000 in regulatory related filing expenses, consulting and sundry administrative costs. The reduction is due to decreased expenses incurred in pursuing potential opportunities to enhance shareholder value.

The Corporation incurred interest and bank charges of $2,345 for the three months ended August 31, 2009 as compared to interest expense of $413 for the same period last year. The increase was largely due to accrued interest on outstanding Ontario capital tax for which management is attempting to negotiate a reduction in taxes claimed as payable by the Province. 

As a result of the foregoing factors, the loss before special items for the three months ended August 31 31, 2009 was $14,403 as compared to a loss before special items of $43,237 for the same period last year. The Corporation incurred special items expense of $nil for the three month period ended August 31, 2009 as compared to $nil for the same period last year. As a result of the foregoing factors, the loss for the three months ended August 31, 2009 was $14,403 as compared to a loss of $43,237 for the same period last year.

Comparison of the six months ended August 31, 2009 and August 31, 2008
Revenue was $nil for the six month period ended August 31, 2009 as compared to $nil for the same period last year. The $13,750 for the three months ended May 31, 2009 was composed of $13,750 in interest income. Administrative Expenses were $22,679 for the six months ended August 31, 2009 as compared to $66,505 for the same period last year. For the six months ended August 31, 2009, the $22,679 included approximately $11,000 in professional and advisory expenses and approximately $11,000 in regulatory related filing expenses, consulting, and sundry administrative costs. For the six months ended August 31, 2008, the $66,505 included approximately $35,000 in professional and advisory expenses and approximately $31,000 in regulatory related filing expenses, consulting and sundry administrative costs. The decrease is due to decreased expenses incurred in pursuing potential opportunities to enhance shareholder value.

The Corporation incurred interest and bank charges of $2,619 for the six months ended August 31, 2009 as compared to interest expense of $1,278 for the same period last year. The increase was largely due to accrued interest on outstanding Ontario capital tax for which management is attempting to negotiate a reduction in taxes claimed as payable by the Province. 

As a result of the foregoing factors, the loss before special items for the six months ended August 31, 2009 was $25,298 as compared to a loss before special items of $67,783 for the same period last year. The Corporation incurred special items expense of $nil for the six month period ended August 31, 2009 as compared to $nil for the same period last year. As a result of the foregoing factors, the loss for the six months ended August 31, 2009 was $25,298 as compared to a loss of $67,783 for the same period last year.

About E.G. Capital Inc.

The Corporation is an inactive company listed on the NEX board of the TSX Venture Exchange Inc ("the Exchange). The business of the Corporation is to identify and evaluate businesses or assets with a view to completing a reactivation transaction on the Exchange. 

Following the sale of certain assets in February, 2005, the Corporation did not engage in any active business other than to preserve and/or convert into cash any assets remaining with the Corporation and to pursue future shareholder enhancing opportunities. The Corporation intends to review and pursue opportunities to unlock the value of its unrecorded future income tax assets.

This press release may contain forward-looking statements relating to the Corporation. Among the important factors that could cause actual results to differ materially from those indicated by such forward looking statements are competitive pressures, technical difficulties, market acceptance, changes in customer requirements, and general economic conditions, and other risks and uncertainties as described from time to time in Corporation's reports, registration statements and filings filed by the Corporation with securities regulatory authorities.

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • E.G. Capital Inc.
    William G. Edwards
    CFO
    (450) 672-7677