CAPVEST Income Corp.
TSX VENTURE : CVS

CAPVEST Income Corp.

October 27, 2005 17:55 ET

CAPVEST Income Corp.: Revision to Presentation of Comparative Balance Sheet Figures for Unaudited Interim Financial Statements

TORONTO, ONTARIO--(CCNMatthews - Oct. 27, 2005) - CAPVEST Income Corp. (the "Company") (TSX VENTURE:CVS) announces that it will revise the comparative balance sheet figures as at December 31, 2004 presented with the unaudited interim financial statements for the three-month period ended March 31, 2005 and the three-month and six-month periods ended June 30, 2005, and will refile its first and second quarter financial statements.

The previously reported comparative balance sheet figures included the assets and liabilities of Biotech Medical Sciences Inc. (Biotech), a company which amalgamated with Entech Investments Inc. ("Entech") on January 1, 2005 to form the Company as if such amalgamation occurred on December 31, 2004.

Although the transaction is an amalgamation in legal form, for accounting purposes, under Canadian generally accepted accounting principles, the Company was required to account for the transaction as an acquisition of Biotech by Entech. Therefore, the comparative figures as at December 31, 2004 and for the year then ended are required to be those of Entech. The amended comparative balance sheet will be revised by removing the accounts of Biotech and presenting the accounts of Entech as at December 31, 2004

The amendment does not affect any of the reported 2005 figures or any 2004 comparative figures in the statements of operations, net realized gains on sale of investments, and of investment portfolio. Also, there was no change to the December 31, 2004 audited financial statements of Entech which were issued and filed with the securities regulators.

As a result of the error, the previously reported assets, liabilities and shareholders' equity of the Company as of December 31, 2004 were overstated by $1,346,741, $71,646 and $1,275,095 respectively, which reflect the net assets of Biotech. On January 1, 2005 the net assets of Biotech were amalgamated with those of Entech to form the Company.

The following table presents the comparative balance sheet figures as at December 31, 2004 as previously reported and as amended to remove the accounts of Biotech and to better classify other account balances.



CAPVEST Income Corp.
Balance Sheet as at December 31, 2004

As previously
reported Restated
Assets
Cash and cash equivalents $ 4,187,172 1,854,226
Dividends and interest receivable - 1,076
Receivable for sale of investments - 985,129
--------------------------------
Total assets $ 4,187,172 2,840,431
--------------------------------
--------------------------------

Liabilities
Administration fee payable $ - 19,402
Issue costs payable 95,000 -
Management fee payable 3,952
--------------------------------
Total liabilities 95,000 23,354
--------------------------------
--------------------------------

Shareholders' Equity
Equity 4,092,172 5,736,449
Surplus (Deficit) - (2,919,372)
--------------------------------
Total shareholders' equity 4,092,172 2,817,077
--------------------------------
Total liabilities and shareholders'
equity $ 4,187,172 $ 2,840,431
--------------------------------
--------------------------------


The above sets out certain changes to the financial statements; however, for more details on the changes to the statements, refer to the restated financial statements, which will be available to the public on SEDAR at www.sedar.com by October 28, 2005.

Contact Information

  • Sentry Select Capital Corp.
    Investor Services (investor inquiries)
    1 (888) 246-6656
    (416) 364-1197 (FAX)
    info@sentryselect.com
    or
    CAPVEST Income Corp.
    Brian McOstrich
    (media inquiries)
    1 (888) 246-6656
    (416) 364-1197 (FAX)