Zuni Holdings Inc.
TSX VENTURE : ZNI.H

November 29, 2010 18:33 ET

Zuni Holdings Reports 2010 Third Quarter Results

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2010) - Zuni Holdings Inc. (the "Company" or "Zuni") (TSX VENTURE:ZNI.H), today reported its financial results for the three month period ended September 30, 2010. The full text of the Company's Interim Financial Statements for the Nine Month Period Ended September 30, 2010 and Management's Discussion and Analysis for the Nine Month Period Ended September 30, 2010 can be found at www.sedar.com.

Q3 Highlights

  • On August 4, 2010, the Company completed a special cash distribution by way of return of capital in the amount of $0.26 per share, payable to shareholders of record as of July 21, 2010.
  • The common shares of the Company were delisted from the Toronto Stock Exchange as of the close of business on August 4, 2010, and were listed for trading on the NEX Board of the TSX Venture Exchange under the symbol "ZNI.H" as of August 5, 2010.

The following events took place subsequent to the close of the third quarter, 2010:

  • On October 20, 2010, the Company entered into a letter of intent ("LOI") with Pacific Safety Products Inc. ("PSP") to complete a business combination by way of a court approved plan of arrangement of Zuni. Under the LOI, PSP has agreed to acquire all of the outstanding common shares of the Company in exchange for PSP common shares at an agreed exchange ratio of one PSP common share for each Zuni common share.
  • On November 17, 2010, the Company entered into an arrangement agreement with Pacific Safety Products Inc. ("PSP") to complete the previously announced business combination by way of a court approved plan of arrangement of Zuni.

Financial Results Highlights (in thousands of dollars):

  • The loss from operations for the three months ended September 30, 2010 was $714 or $0.02 per share.
  • The operating business of the Company was sold during the second quarter of 2010 and there was no revenue generated in the three month period ended September 30, 2010.
  • The loss from operations is comprised of corporate costs relating to ongoing operation of the Company, a long-lived asset impairment and a further loss on sale of subsidiary and other assets.

Contact Information

  • Zuni Holdings Inc.
    Daniel Marks
    President and Chief Executive Officer
    (416) 907-6908