CPVC Financial Corporation
TSX VENTURE : LHB

August 23, 2007 17:47 ET

CPVC Financial Corporation Releases Second Quarter Financial Statements

MONTREAL, QUEBEC--(Marketwire - Aug. 23, 2007) - CPVC Financial Corporation (TSX VENTURE:LHB) ("CPVC Financial" or the "Corporation") today released its unaudited financial statements for the second quarter ended June 30, 2007.

Revenues in the second quarter totaled $212,749 compared to $2,700 last year. In the first half of the the 2007 fiscal year CPVC Financial had revenues of $322,153 compared to $5,715 in the same period last year.

The net income for the second quarter ended June 30, 2007 was $111,208 compared to a loss of $45,137 last year. In the first half of 2007, the Corporation had net income of $157,572 compared to a loss of $80,317 in the first half of 2006.

The following is an overview of the activities of the Corporation during the second quarter ended June 30, 2007 as well as the significant events and achievements of that period:

- The Corporation provided a $1,000,000 bridge loan to Prestige Telecom Ltd., an investee company. This loan was used by Prestige Telecom to finance its acquisition of Plantec Inc.;

- The Corporation recorded a realized net loss on investments of $86,717 and an unrealized gain of $129,916;

- Interest, royalty and bonus income totalled $149,550 compared to $2,700 in the same period last year;

- The fair value of the Corporation's investment portfolio as at June 30, 2007 totalled $4,113,741 compared to $3,302,141, a 24.57% increase or 49.15% on an annualized basis, while total assets grew from $3,631,686 as at December 31, 2006 to $4,374,324 at the end of the second quarter;

- Book value per share at the end of the second quarter was unchanged at $0.044 compared to December 31, 2006 but increased by 69.2% compared to $0.026 per share as at June 30, 2006; and

- The Corporation, through its normal course issuer bid, purchased and cancelled 1,103,000 of its common shares during the quarter at a total cost of $85,653.

After the end of the second quarter, Arura Pharma Inc., an investee company, became listed on the TSX Venture Exchange Inc. ("TSX Venture") and is trading under the symbol ARP. As of the date of this MD&A, the Corporation holds 11,518,576 shares of Arura Pharma Inc. The closing price of the shares of Arura Pharma on the TSX Venture on August 22, 2007 was $0.12.

Also, after the end of the second quarter, Prestige Telecom Inc., an investee company, became listed on the TSX Venture and is trading under the symbol PR. As of the date of this MD&A, the Corporation holds 3,942,755 shares of Prestige Telecom Inc. The Corporation also owns 2,280,000 share purchase warrants of Prestige Telecom, each warrant entitling CPVC Financial to purchase one common share of Prestige Telecom at $0.50 per share prior to November 1st, 2011. The closing price of the shares of Prestige Telecom on the TSX Venture on August 22, 2007 was $0.53. The Corporation also has a 6.50% per annum investment loan in Prestige Telecom for an amount of $1,140,000, which loan is due in full on November 1st, 2011. Finally, the $1,ooo,ooo bridge loan to Prestige Telecom was repaid in full following the end of the quarter.



SUMMARY OF INCOME STATEMENT INFORMATION

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Income Statement June 30, 2007 June 30, 2006
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Revenues $ 212,749 $ 2,700
Net income (loss) $ 111,208 $ (45,137)
Per share - basic and diluted $ 0.0014 $ (0.0020)
Weighted average shares outstanding -
basic and diluted 78,771,280 25,475,775
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SUMMARY OF CASH FLOW INFORMATION

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Cash Flows June 30, 2007 June 30, 2006
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Cash from operating activities $ (133,778) $ (64,282)
Cash from investing activities $ (397,675) $ (47,400)
Cash from financing activities $ 714,347 $ 157,150
Increase (decrease) in cash $ 182,894 $ 45,468
Cash - beginning of quarter $ 3,571 $ 609,777
Cash - end of quarter $ 186,465 $ 655,245
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SUMMARY OF BALANCE SHEET INFORMATION

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Balance Sheet June 30, 2007 December 31, 2006
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Cash and cash equivalents $ 186,465 $ 304,924
Total Assets $ 4,374,324 $ 3,631,686
Total Liabilities $ 909,844 $ 171,985
Share capital $ 6,748,301 $ 6,921,647
Total Shareholders' Equity $ 3,464,480 $ 3,459,701
Total Liabilities & Shareholders' Equity $ 4,374,324 $ 3,631,686
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The Corporation's June 30, 2007 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

  • CPVC Financial Corporation
    Alain Lambert
    President
    (514) 395-1191