Good news, I think that the final sentence, which I have bolded, says it all....Fox.
MARKHAM, ON, Jan. 12 /CNW/ - Nuvo Research Inc. (TSX:NRI) today reported
that it has completed the closing of the previously announced sale of its
Markham head office for $2.9 million. The Company will lease back the current
head office until March 2006 when it will move to smaller, more cost-
efficient, leased premises in Mississauga, Ontario. The new arrangement will
result in annual operating savings of approximately $500,000.
The Company has also reached an agreement with the court appointed
liquidator of Leadenhall Bank & Trust Company to settle litigation between
Leadenhall and Nuvo relating to the amount owing under a $2 million mortgage
over the Markham head office. Leadenhall had claimed that the mortgage
interest rate was 2% per month or over 24% per year. The settlement calls for
payment based on a 5% annual interest rate retroactive to the original
mortgage date of July 18, 2003. The agreement is subject to the approval of
the Bahamian court that appointed the Leadenhall liquidator.
On closing the sale, Nuvo received $1.1 million of net cash proceeds. An
additional $350,000 will be released to Nuvo from escrow upon court approval
of the settlement agreement. The approval is expected by the end of February
2006. If the court does not approve the settlement, the litigation between
Leadenhall and Nuvo will continue and the escrowed funds will not be released
until the courts deal with the matter.
"We are pleased that we have been able to reach a settlement with
Leadenhall's liquidator and sell our head office," said John London, Nuvo's
Vice Chairman. "This allows us to reduce our operating costs and redeploy
capital that had been tied up in real estate to drug development - which is
our core business."<b/> |
