Leisure Canada Inc.

November 26, 2010 12:14 ET

Leisure Canada Inc. Announces Third Quarter Results

TORONTO, ONTARIO--(Marketwire - Nov. 26, 2010) - Leisure Canada Inc. (TSX VENTURE:LCN) (the "Company"), a Canadian corporation with three large-scale luxury real estate projects under development in Cuba, announces its results for the third quarter ended September 30, 2010.

Summary of Significant Events:

  • In the Company's Monte Barreto project, complete architectural, engineering and concept design plans have been approved by the Cuban authorities. Specifications and project information have been compiled in order to begin a Request for Proposal process to select a general contractor.

  • Subsequent to the third quarter ended September 30, 2010, the Company announced on October 4, 2010, the appointment of Ned Goodman as Director and Chairman of the Board of Directors.

  • The Cuban government has introduced amended legislation providing up to 99year leases on properties in qualified recreational developments and even to perpetuity in the case of certain residential properties used for tourism. This compliments previous legislation allowing only a maximum of 50 years (and extendable by a further 25 years). This paves the way for consumers to acquire leasehold real estate in Cuba under competitive financing conditions similar to other offerings in Mexico and the Caribbean.

  • Pursuant to a settlement agreement reached in July 2010 with the former Executive Chairman, whereby it was agreed he would not stand for re-election as a director and that certain employment agreements and other agreements with corporations related to the former Executive Chairman would be terminated. As a result of the settlement agreement, management estimates that the Company's general and administrative expenses have been reduced by an average of $116,000 per month (or approximately 40% per month).

As part of the settlement agreement, the following transactions occurred on July 26, 2010:

(i)    The shared services agreement with Cabrera Capital Corp., a corporation related to the former Executive Chairman, was terminated for a final payment of $655,260; 
(ii)    The lease agreement with Laco Holdings Ltd., a corporation related to the former Executive Chairman, was terminated for a final payment of $87,240; 
(iii)   The former Executive Chairman was paid a severance of $226,741;
(iv)   2,650,000 stock options of the former Executive Chairman and Cabrera Capital Corp. employees have been cancelled.

Additional details on the above may be contained in the Company's interim consolidated financial statements and management's discussion and analysis ("MD&A") for the third quarter ended September 30, 2010, which are filed with the securities regulatory authorities in Canada. These documents will be available for review under the Company's SEDAR profile at www.sedar.com.

About Leisure Canada Inc.

Leisure Canada Inc. is a publicly traded company, incorporated under the laws of Ontario and listed on the TSX Venture Exchange under the symbol "LCN". The Company is engaged in the business of developing hotel, resort and commercial properties in Cuba through its wholly-owned subsidiary, Wilton Properties Ltd. ("Wilton"), in joint venture with Grupo Hotelero Gran Caribe S.A. ("Gran Caribe"), an agency of the Cuban government.

For further information on the Company please visit our website at www.leisurecanada.com. The Company's public filings, including its most recent audited consolidated financial statements, can be reviewed on the SEDAR website (www.sedar.com).

This news release may contain forward-looking statements and information within the meaning of applicable securities legislation. These forward-looking statements reflect management's current expectations, estimates, projections, beliefs and assumptions that were made using information currently available to management. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "expect," "plan," "anticipate," "believe," "intend," "estimate," "predict," "forecast," "outlook," "potential," "continue," "should," "likely," or the negative of these terms or other comparable terminology. Although management believes that the anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve assumptions, known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements and information.

On Behalf of the Board of Directors

Robin Conners, President and CEO

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