VANCOUVER, March 9, 2020 /CNW/ - Itasca Capital Ltd. (TSX-V:
ICL) ("Itasca" or "Company") today filed its audited consolidated
financial statements for the year ended December 31, 2019 and the related management
discussion & analysis, both of which are available under
Itasca's profile on SEDAR at www.sedar.com. All amounts are in
Canadian dollars unless indicated otherwise.
The Company reported net loss attributable to common
shareholders of $209 thousand, or
$0.01 loss per share, and total
comprehensive loss of $447 thousand
in the fourth quarter of 2019, compared to net loss attributable to
common shareholders of $3.5 million,
or $0.16 loss per share in the fourth
quarter of 2018.
For the year ended December 31,
2019, Itasca reported net income attributable to common
shareholders of $47 thousand, or
$0.002 earnings per share, and total
comprehensive loss of $191,024,
compared to net loss attributable to common shareholders of
$6.3 million, or $0.29 loss per share for the year ended
December 31, 2018.
As of December 31, 2019, Itasca
reported total shareholders' equity of $13.1
million with a book value per share of $0.60 based on the 21,810,626 issued and
outstanding common shares.
Significant events during 2019 included the following:
- Effective January 31, 2019,
termination by mutual agreement of Company's management services
agreement with Kingsway Financial Services Inc., through which
Itasca used to receive certain management services, including
services from Larry G. Swets, Jr. as
Chief Executive Officer ("CEO") & Hassan R. Baqar as Chief Financial Officer
("CFO"). The Company entered into new executive services agreements
directly with each of Messrs. Swets and Baqar, who have continued
in their roles as CEO and CFO of Itasca, respectively.
- Execution and closing of the Distribution and Redemption
Agreement ("Agreement") with 1347 Investors LLC ("1347"), whereby
the Company monetized its investment in the Class A Interests of
1347 ("Investment"). Itasca invested US$10
million in Class A Interests of 1347 in July 2016 and had previously received a
US$4 million cash distribution from
1347 in February 2018. At the closing
and pursuant to the terms of the Agreement, Itasca received
approximately US$9 million cash,
61,770 common shares of Limbach Holdings Inc. (Nasdaq: LMB), and
154,333 US$11.50 exercise price
warrants of Limbach Holdings Inc. as part of final distribution
from 1347 to its investors. Upon closing of the Agreement, 1347
became a wholly owned subsidiary of Itasca and continues to hold
Itasca's share of the distribution stated above.
- Change in net unrealized gain from the Investment and
marketable securities amounting to $1.18
million.
Management Comments:
Larry G. Swets, Jr., Chief Executive
Officer, stated, "We are pleased with the overall performance and
final monetization of our investment in 1347 Investors LLC, which
has provided us significant liquidity. We look forward to
continue pursuing value-accretive opportunities for our
shareholders."
Neither TSXV nor its Regulation Services Provider (as that
term is defined in policies of the TSXV) accepts responsibility for
the adequacy or accuracy of this news release.
CAUTIONARY NOTE
Book value per share is a non-IFRS
measure calculated as the total of shareholders' equity divided by
the issued and outstanding shares of Itasca. The term "book value
per share" does not have any standardized meaning according to IFRS
and therefore may not be comparable to similar measures presented
by other companies. There is no comparable IFRS measure presented
in Itasca's audited consolidated financial statements and thus no
applicable quantitative reconciliation for such non-IFRS financial
measure. Itasca believes that book value per share can provide
information useful to its shareholders.
SOURCE Itasca Capital Ltd.