Jannock Properties Limited

Jannock Properties Limited

May 20, 2010 21:20 ET

Jannock Properties Limited Reports March 31, 2010 Results

TORONTO, ONTARIO--(Marketwire - May 20, 2010) - Jannock Properties Limited (TSX VENTURE:JPL.UN) today reported no income or loss for the First Quarter of 2010 under the liquidation accounting principles that it is now applying. The results of operations for the same period in 2009 are not comparable because they were prepared on a going concern basis.

Cash Flows

Cash generated in the First Quarter of this year amounted to $204,000 compared with a usage of cash of $101,000 in the same period last year.

  • Cash receipts for the First Quarter this year were $216,000 for the recovery of development costs that were accrued at December 31, 2009. In the First Quarter of 2009 cash receipts were $13,000 of interest.
  • Cash payments for the First Quarter this year were $12,000 for dissolution costs that had previously been accrued. In the same period last year cash payments were $114,000 for administrative costs.

Capital Structure

The number of Class B Common Shares outstanding is 35,631,932. Currently there are 55 Class A Special Shares that are associated with each Class B Common Share. The combination of one Class B Common Share and 55 Class A Special Shares is listed as a unit on the TSX Venture Exchange (trading symbol: JPL.UN).

Voluntary Dissolution

As previously announced the Corporation is progressing with its plans to complete a voluntary dissolution.

Corporate Items

Currently the Corporation's only significant asset is its cash in the bank. The estimated net cash balance after the payment of remaining liabilities is equivalent to approximately 5.5 cents per unit.

Forward-looking statements contained in this news release involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements. Factors that could cause such differences include local real estate markets, zoning applications, changes in interest rates and general economic conditions. In addition there are risk factors described from time to time in the reports and disclosure documents filed by Jannock Properties Limited with Canadian and U.S. securities regulatory agencies and commissions.

The accompanying interim unaudited financial statements have not been reviewed by the Company's auditors.  
Interim Balance Sheet        
(in thousands of Canadian dollars)        
  March 31   December 31  
  2010   2009  
Cash and cash equivalents $ 2,139   $ 1,935  
Other assets    3     219  
  $ 2,142   $ 2,154  
Accounts payable and accrued liabilities $ 115   $ 127  
Shareholder's Equity            
Capital stock $ 19,551   $ 19,551  
Contributed surplus   6,868     6,868  
Deficit   (24,392 )   (24,392 )
  $ 2,027   $ 2,027  
  $ 2,142   $ 2,154  
Interim Statement of Cash Flows        
(in thousands of Canadian dollars)        
    Three Months  
    Ended March 31  
    2010   2009  
    (unaudited)   (unaudited)  
Cash provided by (used in)            
Cash receipts            
  Recovery of development costs $ 216   $ -  
  Interest received   -     13  
Cash payments            
  Other payments   (12 )   (114 )
Increase (decrease) in cash $ 204   $ (101 )
Cash and cash equivalents - beginning of period $ 1,935   $ 5,813  
Cash and cash equivalents - end of period $ 2,139   $ 5,712  
(unaudited – in thousands of dollars)

1. Summary of significant accounting policies

The Company has presented on a liquidation basis the balance sheet as at March 31, 2010, and the cash flows for the three months ended March 31, 2010.

2. Capital Stock

The Company's capital stock consists of Class A special shares and Class B common shares. The Class A special shares are transferable with and only with the associated Class B common shares and trade as one unit (JPL.UN). There have been no changes to the shares outstanding during the three months to March 31, 2010.

  Number of shares
  Class B Common Class A special Amount
Issued and outstanding at March 31, 2010 35,631,932 1,959,756,260 19,551

3. Capital Management

The Corporation's remaining assets are almost entirely its cash balances. Shareholders at the Annual General and Special Meeting on May 14, 2009 approved a voluntary dissolution of the Corporation and its eventual delisting from the TSX-V exchange. The Corporation is actively working to complete the dissolution as soon as possible.

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