Business
EACOM Timber Corporation Announces Financial Results for the Year Ended March 31, 2010
EACOM Timber Corporation Announces Financial Results for the Year Ended March 31, 2010
About this update from Etruscus Resources Corp.
[{"type":"text","content":"\n\n\n\n Jul. 29, 2010 (Canada NewsWire Group) -- \n\n \n \n \nTR.cnwUnderlinedCell TD {\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell {\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell {\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell {\n BORDER-BOTTOM: #000000 3px solid\n}\n\nVANCOUVER and MONTREAL, July 29 /CNW Telbec/ - EACOM Timber Corporation (TSX VENTURE: ETR; "EACOM" or the "Company") today reported its financial results for the year ended March 31, 2010.\nOn March 26, 2010, EACOM entered into a definitive purchase agreement to acquire the forest products business of Domtar Corporation ("Domtar"). The Company closed the acquisition on June 30, 2010 and accordingly the acquisition is not reflected in the operating results of the Company for the year ended March 31, 2010. The Company paid approximately $102 million in cash and issued 48,070,712 common shares (valued at approximately $27 million) to Domtar upon closing the acquisition.\nAt March 31, 2010, the Company has $145 million recorded as restricted cash which related to the acquisition of the Domtar forest products business. The Company closed in escrow a $145 million brokered private placement financing for subscription receipts on March 26, 2010. The financing was to fund the cash portion of the acquisition purchase price for the Domtar forest products business acquisition, as well as provide working capital for the business. The financing was completed at $0.50 per subscription receipt. On closing the acquisition on June 30, 2010, the subscription receipts were converted into common shares on a one for one basis for no additional consideration and the escrowed proceeds were released to the Company.\n\nRESULTS OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 2010\n\nThe loss and comprehensive loss for the year ended March 31, 2010 was $3,369,000 ($0.07 per common share) compared to $1,870,000 ($0.05 per common share) for 2009, an increase of $1,499,000. This increase was due mainly to higher professional and due diligence fees, travel expenses and Big River Sawmill holding costs for the year ended March 31, 2010 compared to the same period in 2009. In add...