TriNorth Capital Inc.
TSX : TRT

TriNorth Capital Inc.

August 14, 2007 08:00 ET

TriNorth Capital Announces Second Quarter 2007 Results

TORONTO, ONTARIO--(Marketwire - Aug. 14, 2007) - TriNorth Capital Inc. (TSX:TRT) today reported a comprehensive loss of $155,000 ($0.01 per share) for the three months ended June 30, 2007, compared with a net loss of $296,000 ($0.02 per share) for the same period in 2006. General and administrative expenses for the second quarter of 2007 were $160,000 (2006: $233,000). Software development costs for Asian MobileLink (AML) totalled $51,000 for the quarter (2006: $94,000). Gain on marketable securities was $14,000 (2006: $8,000 loss).

For the six months ended June 30, 2007, TriNorth reported a comprehensive loss of $315,000 ($0.02 per share) compared with a net loss of $385,000 ($0.02 per share) for the same period in 2006. General and administrative expenses for the first six months of 2007 were $336,000 (2006: $389,000). Software development costs for AML totalled $86,000 (2006: $94,000). Gain on marketable securities was $9,000 (2006: $35,000), and, following the adoption of the CICA's Handbook sections 1530 and 3251 on January 1, 2007, unrealized investment gains of $8,000 were recognized in other comprehensive income.

Revenue, comprised of interest and other income, for the second quarter was $42,000 compared with $38,000 for the same period last year, and for the first six months of 2007 was $86,000 compared with $63,000 for the same period in 2006.

At June 30, 2007, TriNorth had $2,338,000 in cash and marketable securities (at fair value) and $2,094,000 in investments in privately-held (at book value) and publicly-traded (at fair value) technology-based businesses.

Asian MobileLink

Asian MobileLink (AML), a division of the Company, develops and distributes content (such as games, ringtones and wallpaper) for mobile phones in North America and Asia.

At the end of the second quarter, 45 Flash(c) games had been accepted by China Mobile for distribution. China Mobile is the largest mobile carrier in China. AML will continue to focus on securing additional Flash®-based content from developers for distribution in Asia and North America.

In addition to the portfolio of low to medium risk marketable securities, TriNorth also invests in high growth potential companies, both privately held and publicly traded.

During the first six months of 2007, TriNorth's privately-held investees were Business.ca and VFM Interactive ("VFM"). Business.ca recorded a loss of $351,000 in the period and was disposed of as at June 30, 2007. VFM continued to pursue its growth strategy and its increased revenues and customer base reflect the ongoing shift to online travel sales.

TriNorth's unaudited financial statements for the three months ended June 30, 2007 and the related Management's Discussion and Analysis can be accessed electronically at www.sedar.com.

Proposed Financing and Reorganization

As announced on July 19, 2007, TriNorth has engaged agents for a private placement of special warrants to be sold by offering memorandum. The offering is expected to be in an amount of up to $40 million. Each special warrant will be exercisable into one common share and one common share purchase warrant for no additional consideration. The offering price of the special warrants and the exercise price of the common share purchase warrants have been determined to be $0.20 and $0.24 respectively by negotiation between TriNorth and the Agents.

TriNorth has called a special meeting of its shareholders for September 7, 2007 to approve the financing, as well as a reorganization under which all of TriNorth's assets and liabilities will be transferred into a wholly-owned subsidiary, Centiva Capital Inc. ("Centiva") and the shares of Centiva will be distributed to TriNorth shareholders. Existing TriNorth shareholders will hold shares of both TriNorth and Centiva.

Notice of the special meeting of shareholders and a management information circular detailing the financing and reorganization are expected to be mailed to shareholders on August 16, 2007.

TriNorth Capital Inc. is a Canadian-based investment company that has investments in privately-held and publicly-traded high growth potential companies, cash resources and substantial tax losses to shelter future income and investment gains.

For more details about TriNorth and its investments please visit its website at www.trinorthcapital.com.

This release contains forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct, and such forward looking statements should not be unduly relied upon. These statements speak only as of the date of this release, and are subject to a number of risks and uncertainties, including the factors discussed in the Company's current and previous filings with the Canadian securities regulatory authorities. Actual results could differ materially from these forward-looking statements.

Contact Information

  • TriNorth Capital Inc.
    John Pennal
    President & Chief Executive Officer
    (416) 956-4926
    Website: www.trinorthcapital.com