Net Shepherd Announces Financial Results
CALGARY, July 6 /CNW/ - Net Shepherd Inc. (CDNX: WEB - news) announces its results for the year ended December 31, 2000 and the three months ended March 31, 2001. The financial statements are being mailed to shareholders today.
For the year ended December 31, 2000, Net Shepherd incurred a net loss of approximately $123 million, compared to a net loss for the previous year of $5 million. The loss for the 2000 fiscal year includes write downs of approximately $75 million for good will and intangibles.
For the three months ended March 31, 2001, Net Shepherd incurred a net loss of $6.5 million or $0.09 per share component to a $4.9 million or $0.08 per share in 2000. The two quarterly periods are not comparable, as the first quarter of 2000 reflects a higher level of activity in Answer Inc., and lower level of activity at ClickChoice, Ktopia and head office operations. Revenues were $1.4 million in the first quarter of 2000 compared to $0.3 million in the first quarter of 2001.
The company also announces:
1. It has closed its restructuring transaction with Vanenburg Group
BV. This transaction transfers the Company's subsidiaries, Answers
and ClickChoice, to Vanenburg Group, along with their associated
liabilities, assets and software for a one time cash payment to Net
Shepherd of US $450,000 and extinguishment of loans payable by Net
Shepherd and its subsidiaries to Vanenburg Group of almost $22
million.
2. It has agreed to revised terms for the sale of its subsidiary,
Knowledge Pulse Corporation ("Ktopia"), subject to regulatory
approval. Ktopia is based in New Jersey, USA and is in the business
of providing content management solutions online via the Internet,
although its operations have essentially ceased due to a lack of
funding. Ktopia's liabilities significantly exceed its assets. The
management of Ktopia is purchasing all the shares of Ktopia for $1
and will grant to Net Shepherd a perpetual license royalty equal to
3% of Ktopia's gross revenues derived from work done for third party
clients. In addition, Net Shepherd will grant to the purchaser a
non-exclusive license to use Net Shepherd patented software. The
purchaser will indemnify Net Shepherd with respect to Ktopia's
outstanding liabilities.
Net Shepherd's Chairman Owen Pinnell commented: "We now intend to focus on strategic and financing matters, and will be making further announcements in this regard over the coming weeks."
The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
