Newlook Industries Corp.
TSX VENTURE : NLI

Newlook Industries Corp.

July 06, 2009 10:32 ET

Newlook Files Audited Fiscal 2008 and Unaudited Interim First Quarter 2009 Financial Statements

TORONTO, ONTARIO--(Marketwire - July 6, 2009) - Newlook Industries Corp. (TSX VENTURE:NLI)("Newlook" or the "Company") is pleased to announce it has released its audited operating results for the year ended December 31, 2008 and the three months ended March 31, 2009.

The Company previously announced in news releases that the December 31, 2008 audited annual financial statements would not be filed on time due to two subsidiaries of the Corporation being placed into receivership by a secured creditor on January 9, 2009. The delay in filing of the annual statements also caused a delay in filing of the first quarter interim financial statements. The Company has now finalized its audit and is able to release the audited annual financial statements together with its interim unaudited quarterly financial statements.

Consolidated revenues of the Company for the year ended December 31, 2008 were $40,068,334 and revenues for the three month period ended March 31, 2009 were $5,425,408. The Company incurred a net loss of $11,849,400 during the year ended December 31, 2008 and recorded net income of $85,532 during the three month period ended March 31, 2009.

Operating results for fiscal 2008 were affected by a special charge loss provision of $8,328,724 associated with the bankruptcy proceedings against the operating subsidiaries of the Company's majority owned subsidiary Wireless Age and impaired asset write downs totaling $3,836,256.

The operating assets of the Wireless Age subsidiaries were sold by the receiver of the entities effective April 30, 2009 and the subsidiaries were assigned into bankruptcy on June 15, 2009.

As a result of the recent bankruptcy proceedings within the Wireless Age subsidiaries and the pending sale of the Onlinetel operating business unit the Company will have no material on going operations. However, as previously announced the Company plans, subject to regulatory approval, to invest in a biomass renewable energy project.

Gary N. Hokkanen, Newlook CFO stated; "The operating results of fiscal 2008 are not indicative of what stakeholders can expect in the future. With the bankruptcy that occurred in Wireless Age on June 15, 2009, the Wireless Age business unit will deconsolidate the financial troubled subsidiaries. In addition, once the bankruptcy proceedings are resolved over time the special charge loss provision will be adjusted accordingly."

Newlook CEO, John G. Simmonds commented; "Filing of our year end and interim first quarter operating results is the first step in our restructuring steps because it puts the Company back into good standing from a regulatory reporting point of view. Over the next short while we will begin to announce our intentions for Newlook and how loyal shareholders will be rewarded."

Newlook Industries Corp., headquartered in Toronto, Ontario, is a publicly traded company listed on the TSX Venture Exchange. For more information please call (416) 477-5656 or refer to www.sedar.com.

The management of the company, who take full responsibility for its content, prepared this press release. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This press release contains forward-looking statements relating to future events and results that are based on Newlook's current expectations. These statements involve risks and uncertainties including, without limitation, Newlook's ability to successfully develop and market its products, consumer acceptance of such products, competitive pressures relating to price reductions, new product introductions by third parties, technological innovations, and overall market conditions. Consequently, actual events and results in future periods may differ materially from those currently expected.

Contact Information

  • Newlook Industries Corp.
    John G. Simmonds
    Chief Executive Officer
    (416) 477-5656 x301
    or
    Newlook Industries Corp.
    Gary N. Hokkanen
    Chief Financial Officer
    (416) 477-5656 x303