Genterra Capital Inc. reports year-end financial results and Loan Facility

Jan 28, 2014, 13:07 ET from Genterra Capital Inc.

Toronto, Jan. 28, 2014 /CNW/ - Genterra Capital Inc. (TSX Venture - "GIC" - Common)

GIC today announced its financial results for its fiscal year ended September 30, 2013.  Revenues for the year were $3,415,964, yielding a net loss of $212,634 and a loss per share of $0.02. This compares with revenues of $3,254,803, a net loss of $543,351 and a loss per share of $0.06 for the 2012 fiscal year.

Capitalizing on favourable market conditions, during the year, the Company successfully completed a $3 million 3.22% first mortgage financing on one of its properties.

The Company also announced that it has entered into an agreement with Highroad Estates Inc. ("Highroad") relating to the installation, management and operation of two Solar Generator projects to be located on the roofs of two of the Company's facilities. The first project, to be located at the Company's Wendell facility, will be operated by Highroad and the second project, to be located at the Company's Dobbie facility, will be operated by the Company. As part of this arrangement, the Company has made available to Highroad a 3 year Term Loan Facility (the "Loan") in the amount of $2,300,000 bearing interest at a rate of 4% per annum, with a portion of the principal to be repaid during the term and the balance to be repaid on January 2, 2017. The Loan is to be used by Highroad to finance the installation of the equipment required to operate the Wendell Solar Generator Project. The Loan is secured by a first fixed and floating charge on all of Highroad's assets. The Company currently has significant excess cash on hand and the Lease and Loan to Highroad represents a prudent investment for the Company.  As Highroad and the Company have a common "control person", the Loan is considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any shares issued to or the consideration paid by such persons will exceed 25% of the Company's market capitalization. 

Effective October 1, 2011, GCI began preparing its consolidated financial statements in accordance with International Financial Reporting Standards, with retroactive restatement of comparative figures. Accordingly, the financial statements for the comparative year ended September 30, 2012 represent the first annual financial statements of the Company prepared in accordance with International Accounting Standards.

Genterra Capital Inc. is a management and holding company whose assets include rental real estate properties and investments.

Disclaimer: Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Genterra Capital Inc.