BAM Investments Corp.
TSX : BNB

BAM Investments Corp.

December 29, 2006 16:30 ET

BAM Investments to File Amended Financial Statements

TORONTO, ONTARIO--(CCNMatthews - Dec. 29, 2006) - BAM Investments Corp. (TSX:BNB) (formerly BNN Investments Ltd.) today announced that it will file amended financial statements as at and for the nine months ended September 30, 2006 and as at and for the years ended December 31, 2005 and 2004 which reflect changes to the book value recorded in respect of investments purchased during 2006 and 2004. The amendments have no impact on the company's cash flows, tax values and net asset values previously reported in respect of these periods.

In particular, the company has amended its financial statements to record securities purchased from a shareholder in 2006 and 2004 at an amount equal to the book value of the shares in the accounts of the vendor as opposed to an amount equal to the transaction value established at the time, which is the basis on which the statements were initially filed, because it was determined that the change in ownership was not substantive. This required conforming changes to the book value of common shares issued as consideration for the securities purchased, as well as amounts recorded in respect of future tax items. The changes are detailed in the amended financial statements and which will be available on SEDAR's website at www.sedar.com.

The book values of the company's investment and common share capital will be reduced by $58.2 million as at December 31, 2005 and 2004, and by $487.4 million and $428.2 million, respectively, at September 30, 2006. The future tax liability as at September 30, 2006 which was previously reported at $57.7 million will be reduced to $nil and the future tax recovery for the nine months ended at the same date is increased by $0.9 million, with corresponding changes to net income and net income per share.

The company believes that the most important measures of the company's performance are it net worth as calculated with reference to the market value of the company's investments as well as its cash flows and notes that both measures are unaffected by the amendments. The company further notes that, beginning in 2007, the company will be required to record its investments at amounts equal to their fair market values as opposed to the book values that are currently being amended.

This news release contains forward-looking statements concerning the Company's business and operations. The Company cautions that, by their nature, forward-looking statements involve risk and uncertainty and the Company's actual results could differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Information Form for a description of the major risk factors.

Contact Information

  • BAM Investments Corp.
    Brian D. Lawson
    President
    (416) 359-8601