TechCana Inc.

June 30, 2005 14:10 ET

TechCana Announces its Financial Results for the Third Quarter Ending April 31

ST-FELICIEN, QUEBEC--(CCNMatthews - June 30, 2005) - Over the period from February 1st 2005 to April 30, 2005, the TechCana Inc. ("TechCana") (TSX VENTURE:TCN) subsidiary, Pan-O-Starr Inc. ("POS") (TSX:POS) was not operational. Actually, it has rented out its building and equipment to Pinexel Inc. ("Pinexel") so that this company could get set up with the equipment required to manufacture multi-layered wood flooring products as soon as the anticipated financing within the framework of its transaction with Pinexel is finalized. This approach will facilitate start-up operations to manufacture multi-layered hardwood flooring.

Taking into account that the company has not been operational, losses for the third quarter amount to $313,053. However, the interest revenues from Immigrant Investor Program and the cancellation of debt towards Ministere des Ressources Naturelles et de la Faune permited to finish this quarter with a gain of $129 220 , be a net earning of $0.01 per share on a fully diluted basis. The only income of the subsidiary has been from the rental of its facilities to Pinexel. Its expenses are made up mainly of fixed costs such as taxes, insurance, electricity along with depreciation costs. Liquidity requirements of the company have been totally covered by advances from Innovatech Regions Ressources. Fixed asset expenses in the amount of $14,489 cover building improvements, purchase of forks and a new battery for the lift, a sprinkler and restoration of a shed.

The balance sheet shows cash in hand in the amount of $36,587. However working capital is $5.1M in the red. This situation can be explained mainly by entry of the long term debt of $3.6M in the short term liabilities because an agreement with this secured creditor has not yet been finalized. The other major criterion of this balance sheet is that equity capital in the amount of 2.6M$ shows the requirement for a large amount of capital and substantial financial restructuring of the Company. All of the Company's financial reorganization has been presented in the May 6, 2005 information sheet to shareholders and it has been accepted by them on June 6, 2005.

In this context, the transaction being considered with Pinexel should be completed over the next few weeks to enable the manufacturing of multi-layered wood flooring in the POS facilities, a product that would make this Company profitable in the future.

The TSX Venture Exchange does not assume responsibility for the pertinence or accuracy of the current press release.

Contact Information

  • TechCana Inc.
    Mister Yvon L. Levesque
    (418) 528-0315