Okay, here goes.
Basically, the company engaged in trading of its own shares and lost something like $2.2 million during the just-completed fiscal year in the process. (Check your financials for the exact figures, as I do not have the numbers here at home.)
That is reflected in the item called "Trading Loss", if memory serves, which then has an annotation to see Note 12.
All figures in US dollars.
Here is Note 12.
<quote>
Share Repurchase Program
In 1997 the company authorized the repurchase of up to $2,000,000 worth of shares
through open market transactions to return this stock to treasury. As at July 31, 1998,
the company had forwarded $5,225,927 to five brokerage accounts of certain
shareholders and had purchased and resold shares at values of $0.30 to $1.06. As a
result of trading incurred while implementing this stock repurchase program, the
company occurred (sic) significant trading losses and commission expenses. The losses
incurred (sic) in 1998 were $2,635,679 and in accordance with Canadian Accounting
principles has been accounted for as a charge to the deficit at July 31, 1998.
As at July 31, 1998 the company had returned to treasury 1,947,276 shares of
common stock purchased through these accounts. At the audit report date, the
company held a further 1,162,195 shares in the accounts of these shareholders. The
trading losses and commission expenses on these shares will be charged to Deficit in
the fiscal period the shares are resold.
<end quote> |
