CALGARY, ALBERTA--(Marketwired - May 22, 2014) -
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Pro-Trans Ventures Inc. (the "Company") (TSX VENTURE:PVI) today reported financial results for the Company's first quarter ended March 31, 2014.
Q1 2014 HIGHLIGHTS
- Revenue for the quarter $14.1 million as compared to $13.3 million in the same period of 2013
- Comprehensive loss for the quarter was $0.3 million, flat to the same quarter last year
The full version of the Company's financial statements and Management's Discussion and Analysis can be viewed on the Company's website at www.protransventures.com, or on SEDAR at www.sedar.com. All financial information is prepared in accordance with IFRS and all dollar amounts are expressed in Canadian dollars unless otherwise indicated.
On April 15, 2014, Walter Energy, the Company's largest customer as measured by revenues, announced that it would suspend its Wolverine operations in June and its Brule coal mining operations in July. The Company expects to continue its Willow load out, Brule coal haul and Falling Creek Connector road maintenance operations until December 2014 at which time all of these operations would be suspended. Under the terms of the contract on the Brule coal haul agreement, Walter Energy is required to pay reasonable costs associated with the complete or partial demobilization and remobilization of the Company's equipment as well as a standby fee sufficient to compensate the Company for reasonable costs of keeping its equipment and organization related to the Brule coal haul in a standby status.
On May 21, 2014 the Company announced that it received a notice of default (the "Default Notice") from the lender (the "Lender") under the Company's $5,000,000 secured convertible debenture loan (the "Debenture") as a result of the Company's failure to make its interest payments under the Debenture since December 2013. Accordingly, the Lender gave notice that, unless the default is cured within 60 days, the principal, interest and all other monies and obligations owing under the Debenture are due and payable and the Lender will enforce its security, which consists of a pledge of all of the shares in the Company's only operating subsidiary, Maple Leaf Loading Ltd. ("Maple Leaf").
Based on the Company's current financial position and the financial position of Maple Leaf, the Company has concluded that it will not be possible for the Company to cure the default within the 60 day period and as such the board of directors of the Company (the "Board") has determined to co-operate with the Lender in the enforcement of its security and to provide for an orderly transition of management and operations of Maple Leaf. Upon foreclosure of the all of the shares of Maple Leaf pursuant to the exercise of the Lender's security, the Company will no longer have any operations and extremely limited ability to acquire more without an equity investment, which is not foreseen at this time.
Pro-Trans is a Calgary based public company listed on the TSX Venture Exchange. The Company is actively involved in specialized transportation and logistics services within Western Canada, through its wholly owned subsidiary, Maple Leaf Loading Ltd. ("Maple Leaf"), based in Prince George, BC. Maple Leaf, a mining support company, offers specialized transportation services related to the management, handling, and transportation of coal and ore concentrates for customers in the mining industry in BC, Alberta, and the Yukon.
The discussion of financial results in this press release includes reference to EBITDA which is a non-IFRS measure. The Company provides this measure as additional information regarding the Company's financial results and performance. Please refer to the Company's MD&A for the three months and year ended December 31, 2013 for a definition and reconciliation of this measure to the Company's financial statements.
This press release contains certain statements or disclosures relating to Pro-Trans that are based on the expectations of Pro-Trans as well as assumptions made by and information currently available to Pro-Trans which may constitute forward-looking information under applicable securities laws. In particular, this press release contains forward-looking information related to the future financial and operational performance of the Corporation with respect to the Corporations customer base, the addition of new equipment and the completion of an on-site maintenance facility. Such forward looking information involves material assumptions and known and unknown risks and uncertainties, certain of which are beyond Pro-Trans' control. Many factors could cause the performance or achievement by Pro-Trans to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking information. Pro-Trans' Annual Information Form, Management's Discussion and Analysis and other documents filed with securities regulatory authorities (accessible through the SEDAR website at www.sedar.com) describe certain risks, material assumptions and other factors that could influence actual results. Pro-Trans disclaims any intention or obligation to publicly update or revise any forward looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
Neither the TSX Venture Exchange, nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Not for distribution to U.S. Newswire Services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities laws.