BOUCHERVILLE, QC, July 2, 2013 /CNW Telbec/ - At the request of the Autorité des marchés financiers, Noveko International Inc. (the "Corporation") issues this press release to indicate that in accordance with the IFRS accounting requirements, the Corporation should have recognized in its audited consolidated financial statements for the financial year ended June 30, 2012 and in its 2012 Annual Management's Discussion and Analysis, a value loss of $1,458,000 in connection with its then subsidiary, SARL Noveko Algérie ("Noveko Algérie"). This amount is representative of the difference between the $2,858,302 book value of Noveko Algérie (representing the Assets held for sale amount less the Liabilities held for sale amount shown in Note 7 to these annual financial statements) and the amount of $1,400,000, being the consideration then agreed to for the transfer of the Corporation's shareholding in Noveko Algérie, even though this transfer had not yet occurred. If such value loss would have been so recognized the following changes would have occurred in these annual financial statements:
| Amounts indicated in the Audited Consolidated Financial Statements |
Rectified Amounts taking into account the aforesaid loss value |
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| Net loss from discontinued operations | $ | 681,808 | $ | 2,139,808 | ||
| Net loss | $ | 15,664,918 | $ | 17,122,918 | ||
| Basic and diluted earnings per share for discontinued operations | $ | 0.01 | $ | 0.02 | ||
| Basic and diluted earnings per share | $ | 0.17 | $ | 0.18 | ||
| Assets held for sale | $ | 3,119,074 | $ | 1,661,074 | ||
| Total assets | $ | 22,274,359 | $ | 20,816,349 | ||
| Deficit | $ | 120,616,572 | $ | 122,074,572 | ||
| Equity attributable to the Corporation's shareholders | $ | 11,188,806 | $ | 9,730,806 | ||
| Total equity | $ | 11,152,934 | $ | 9,694,934 | ||
| Total liabilities and Equity | $ | 22,274,359 | $ | 20,816,349 | ||
However, the Corporation wishes to point out that this transaction having been finalized on March 31, 2013 for a total consideration of $900,000, it has recognized a loss, in its interim financial statements for the three and nine-month periods ended on March 31, 2013, in connection with the transfer of its shareholdings in Noveko Algérie of a final amount of $2,018,787. These financial statements were filed on May 14, 2013.
For comparative purpose between the appropriate year and periods, the Corporation will show in its 2013 annual financial statements (and in its interim financial statements for its 2014 three and six-month periods) the amounts that should have been so shown in its 2012 annual financial statements and in its 2013 interim financial statements for the three and six-month periods.
Profile of the Corporation
The Corporation specializes in the air filtration segment by providing its clientele with innovative and eco-energetic filtration solutions. As such, through its subsidiaries, the Corporation designs, develops, manufactures and markets air filters incorporating its patented air filtration technologies, which filters are cleanable and recyclable, and have a much longer life span than conventional air filters. These filters are used in farm buildings, in institutional, commercial, industrial and residential buildings, and in the ground and aeronautics transport industry.
Through distributors, the Corporation furthermore continues to commercialize antimicrobial masks and respirators, hands sanitizers and ultrasound scanners for use in human and veterinary medicine.
Certain statements set forth in this press release constitute forward-looking statements. In some cases, these statements are identified by the use of terms such as "may", "could", "might", "intend", "should", "expect", "project", "plan", "believe", "estimate" or other comparable variants. These statements are based on the information available at the time they are written, on assumptions made by management and on the expectations of management, acting in good faith, regarding future events, including those relating to economic conditions, fluctuations in exchange rates and operating expenses, and the absence of unusual events entailing supplementary expenditures. Although management considers these assumptions and expectations reasonable based on the information available at the time they are written, they could prove inaccurate. Forward-looking statements are also subject, by their very nature, to known and unknown risks and uncertainties such as those related to the industry, acquisitions, labor relations, credit, key officers, supply and product liability. The actual results of Noveko International Inc. could differ materially from those indicated or underlying these forward-looking statements. The reader is therefore recommended not to unduly rely on these forward-looking statements. Forward-looking statements do not reflect the potential impact of special items, any business combination or any other transaction that may be announced or occur subsequent to the date hereof. Unless otherwise required under securities laws, the Corporation does not intend and undertakes no obligation to update or revise the forward-looking statements.
SOURCE: NOVEKO INTERNATIONAL INC.
Gary McCone
Senior Vice-President and Chief Financial Officer
Tel: (514) 875-0606
http://www.noveko.com
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