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

June 29, 2009 18:07 ET

E.G. Capital Inc. Announces Results for the Year Ended February 28, 2009

BROSSARD, QUEBEC--(Marketwire - June 29, 2009) - E.G. Capital Inc. (NEX:EGC.H), ("E.G. Capital"), formally National Construction Inc., today announces results for the year ended February 28, 2009.

Comparison of the twelve months ended February 28, 2009 and February 29, 2008

Revenue was $120,613 for the twelve month period ended February 28, 2009 as compared to $32,254 for the same period last year. The $120,613 for the twelve months ended February 28, 2009 was composed of a $26,029 gain on exchange on cash held in-trust of $96,153 USD, a $53,314 gain on exchange on the loan advance of $195,000 USD and interest income of $41,270 that was composed of $25,026 in interest earned on the loan advance of $195,000 USD and $16,244 in interest earned on term deposits. The revenue of $32,254 for the twelve months ended February 28, 2008 was composed of interest earned on term deposits. Administrative Expenses were $143,346 for the twelve months ended February 28, 2009 as compared to $178,043 for the same period last year. For the twelve months ended February 28, 2009, the $143,346 included approximately $73,635 in professional and advisory expenses and approximately $69,711 in regulatory related filing expenses, consulting, and sundry administrative costs. For the twelve months ended February 29, 2008, the $178,043 included approximately $62,000 in professional and advisory expenses and approximately $111,891 in regulatory related filing expenses, consulting and sundry administrative costs. The reduction is due to reduced expenses incurred in pursuing potential opportunities to enhance shareholder value.

The Corporation incurred interest and bank charges of $10,565 for the twelve months ended February 28, 2009 as compared to interest expense of $23,629 for the same period last year. The decrease was largely due to decreased interest rates on outstanding Ontario capital tax for which management is attempting to negotiate a reduction in taxes claimed as payable by the Province. Write-down of assets held for sale was $nil for the twelve months ended February 28, 2009 as compared to $25,000 for the same period last year.

As a result of the foregoing factors, the loss before special items for the twelve months ended February 28, 2009 was $33,298 as compared to a loss before special items of $194,418 for the same period last year. The Corporation incurred special items expense of $275,290 for the twelve month period ended February 28, 2009 as compared to $50,184 for the same period last year. For the twelve months ended February 28, 2009, the special items expense was composed of a doubtful allowance on the loan advance of $195,000 USD including accrued interest translated at the CDN $ equivalent. The special item income earned for the twelve months ended February 28, 2008 was composed of $52,571 in recovery of income from a joint venture, a partial recovery of an earn-out allowance recorded in the prior year of $34,247 and an expense of $36,634 representing an adjustment to CSST recoverable.

As a result of the foregoing factors, the loss for the twelve months ended February 28, 2009 was $308,588 as compared to a loss of $144,234 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) 444-2405 ext 237