Fronsac Capital Inc.
TSX VENTURE : GAZ.P

Fronsac Capital Inc.

August 31, 2009 16:38 ET

Fronsac Capital Inc. Releases Annual Financial Statements

MONTREAL, QUEBEC--(Marketwire - Aug. 31, 2009) - Fronsac Capital Inc. ("Fronsac") (TSX VENTURE: GAZ.P) today released its revised audited financial statements for the year ended December 31, 2008 and revised unaudited financial statements for the quarter ended March 31, 2009.

Fronsac adjusted the above financial statements to correctly allocate the acquisition cost of the purchase of La Societe en commandite BCCGL Richelieu St-Hilaire ("BCCGL") made on August 5, 2008.

The acquisition cost has been initially allocated in relation with the book value of the assets acquired and the liabilities assumed of the vendor. This acquisition cost should have been allocated in relation with the fair value of the assets acquired and the liabilities assumed of the vendor. This correction increased the value of the real estate investments by $594,747, cancelled the recorded goodwill of $634,855 and added an new account called intangible assets for $40,108.

At the same time, to be in conformity with the industry's practices, the Company has changed its amortization policy on buildings from straight-line 25 years to straight-line 40 years. This modification resulted in a decrease of $4,030 in amortization expense. The Company has also amortized the intangible assets resulting in an additional amortization expense of $3,086. Finally these changes have resulted in the recording of future income taxes for a net amount of $9,966.

Originally and as previously reported, the net loss for the year ended December 31, 2008 was $(180,061) or $(0.027) per share (2007: $(62,456) or $(0.023)). The adjusted net loss is now $(189,083) or $(0.029) per share.

Originally and as previously reported, the net earnings for the quarter ended March 31, 2009 was $3,907 or $0.001 per share (2008: $(5,537) or $(0.002)). The adjusted net earnings is now $4,471 or $0.001 per share.

The following tables show, for the reporting periods of December 31, 2008 and March 31, 2009, the information on the income statement and the balance sheets indicating in the first column the amounts previously reported and in the second column the revised numbers.



SUMMARY OF INCOME STATEMENT INFORMATION

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Earnings December 31, 2008 December 31, 2008
Previously Adjusted
-------------------------------------------------------------------------
Revenue $76,405 $76,405
Net income (loss) $(180,061) $(189,083)
Per share - basic and diluted $(0.027) $(0.029)
Weighted average shares outstanding -
basic and diluted 6,573,333 6,573,333



SUMMARY OF INCOME STATEMENT INFORMATION

-------------------------------------------------------------------------
Earnings March 31, 2009 March 31, 2009
Previously Adjusted
-------------------------------------------------------------------------
Revenue $54,009 $54,009
Net income (loss) $3,907 $4,474
Per share - basic and diluted $0.001 $0.001
Weighted average shares outstanding -
basic and diluted 11,240,000 11,240,000



SUMMARY OF BALANCE SHEETS INFORMATION

-------------------------------------------------------------------------
Balance Sheets December 31, 2008 December 31, 2008
Previously Adjusted
-------------------------------------------------------------------------
Cash $1,192,000 $1,192,000
Total Assets $3,394,480 $3,500,230
Total Liabilities $1,188,585 $1,303,357
Share capital $2,555,000 $2,555,000
Total Shareholders' Equity $2,205,895 $2,196,873
-------------------------------------------------------------------------



SUMMARY OF BALANCE SHEETS INFORMATION

-------------------------------------------------------------------------
Balance Sheets March 31, 2009 March 31, 2009
Previously Adjusted
-------------------------------------------------------------------------
Cash $1,193,445 $1,193,445
Total Assets $3,380,427 $3,486,744
Total Liabilities $1,170,625 $1,285,397
Share capital $2,555,000 $2,555,000
Total Shareholders' Equity $2,209,802 $2,201,347
-------------------------------------------------------------------------


The Company's revised December 31, 2008 and March 31, 2009 financial statements may be viewed on SEDAR at www.sedar.com

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

Contact Information

  • Fronsac Capital Inc.
    Michel Lassonde
    450-536-5328