The Company is today filing its unaudited consolidated financial statements as at and for the three months ended
Commenting today on CanAsia's 2023 first quarter results, President and CEO
HIGHLIGHTS
- CanAsia had working capital totaling
$3.1 million , no long-term debt and shareholders' equity of$2.2 million atMarch 31, 2023 . - Common shares outstanding were 49.8 million at
May 8, 2023 andMarch 31, 2023 . - Net loss attributable to common shareholders for the first quarter of 2023 was
$1.3 million ($0.03 per share). Cash flow used in operations for the first quarter of 2023 was$84 thousand ($0.00 per share). - General and administrative expense in the first quarter of 2023 was
$529 thousand , comprised primarily of expenses related to personnel and premises, external services, and public company costs. - Personnel and premises costs in the first quarter of 2023 were
$189 thousand . These costs include salaries, and benefits for employees, and fees incurred for consultants and contractors. They also include rent and other office costs related to the Company'sCalgary office. - External services costs in the first quarter of 2023 were
$235 thousand , mainly related to professional fees for legal, audit and tax services. - Public company costs of
$94 thousand in the first quarter of 2023 were incurred for maintaining the Company's status as a public company. - Operating expenses in the first quarter of 2023 were
$90 thousand and were incurred to safeguard and maintain the assets ofAndora Energy Corporation's ("Andora") suspended Steam Assisted Gravity Drainage project facility and wellpair at Sawn Lake Central. - The natural gas pipeline tariff agreement which was entered into between Andora and a third party in 2018 with a commencement date of
May 1, 2023 is considered an onerous contract as ofMarch 31, 2023 under IAS 37. The Company has recognized a provision of$0.9 million representing the net cost of fulfilling the contract. - The current portion of the decommissioning provision of
$0.9 million as atMarch 31, 2023 relates to the legacy subsidiaries ofPan Orient Energy Holdings Ltd. ("POEH") which had held interests in the East Jabung and Jambi Production Sharing Contracts inIndonesia . CanAsia is withdrawing from activities inIndonesia and decommissioning related costs are expensed when incurred. The non-current portion of the decommissioning provision of$1.4 million as atMarch 31, 2023 pertained to Andora's interests inSawn Lake ,Alberta . - In
February 2023 , Andora sold equipment to a third party for$100 thousand . The net book value of the equipment was $nil, resulting in a gain on sale of$100 thousand . - On
February 28, 2023 , the board of directors of Andora accepted a formal proposal made by CanAsia with respect to a transaction (the "Andora Transaction") whereby the outstanding shares of Andora were consolidated (the "Consolidation") and all fractional shares resulting from the Consolidation were redeemed by Andora and cancelled, and the holders thereof would be entitled to receive a cash redemption payment of$0.044 for each pre-Consolidation share of Andora. As part of the Andora Transaction all issued and outstanding options to acquire shares of Andora were surrendered for their "in-the-money" value. - The Andora Transaction was approved by shareholders of Andora at a special meeting held on
March 27, 2023 . All other conditions to the Andora Transaction becoming effective were also satisfied or waived, and the Andora Transaction was completed onMarch 27, 2023 . As a result of the Andora Transaction, Andora now has 1 common share outstanding. CanAsia, which previously owned 88.2% of the outstanding shares of Andora as atDecember 31, 2022 , now owns 100% of Andora. Non-controlling interest was reduced to $nil onMarch 27, 2023 , with a corresponding offset to deficit. - Consideration paid for redeeming fractional shares pursuant to the Andora Transaction amounted to
$1.24 million . Andora paid former option holders a total of$0.33 million , representing the "in-the-money" value of all the options surrendered. Other expenses of the Andora Transaction totaled$0.1 million .
The majority of obligations with regard to the earlier sale of
COVID-19 and Ukraine Invasion
Events such as the Covid-19 pandemic and the invasion of
Climate Change and Environmental, Social, and Governance ("ESG")
Climate change and ESG culture policies are evolving at regional, national and international levels. Political and economic events may significantly affect the scope and timing of ESG policies and climate change measures.
The direct or indirect costs of compliance with greenhouse gas-related regulations and ESG directives may have an adverse effect on the Company's and its customers' businesses, financial condition, results of operations and prospects; however, at this time these costs have not yet been quantified.
Financial and Operating Results
| Three months ended and as at | ||||||
($000s of Canadian dollars except where indicated) | 2023 | ||||||
FINANCIAL | |||||||
Financial Statement Results | |||||||
Net loss attributable to common shareholders (1) | (1,265) | ||||||
Per share – basic and diluted | |||||||
Cash flow used in operating activities (2) | (84) | ||||||
Per share – basic and diluted | |||||||
Cash flow used in investing activities (2) | (1,580) | ||||||
Per share – basic and diluted | |||||||
Cash flow used in financing activities (2) | (2) | ||||||
Per share – basic and diluted | |||||||
Working capital | 3,099 | ||||||
Shareholders' equity (3) | 2,194 | ||||||
Shares outstanding (000s) | 49,794 | ||||||
General and administrative expense (1) | (529) | ||||||
Operating expense (1) | (90) | ||||||
Natural gas pipeline tariff expense (1) | (901) | ||||||
Stock-based compensation (1) | (38) | ||||||
Amortization (1) | (16) | ||||||
Decommissioning recovery (1) | 46 | ||||||
Gain on sale of equipment (1) | 100 | ||||||
Finance income (1) | 83 | ||||||
Foreign exchange gain (1) | 31 | ||||||
Deferred income tax recovery (1) | 22 | ||||||
Net loss attributable to non-controlling interest in Andora (1) | 27 | ||||||
Net loss attributable to common shareholders (1) | (1,265) | ||||||
1) As set out in the Consolidated Statement of Operations and Comprehensive Loss in CanAsia's Consolidated Financial Statements. | |
2) As set out in the Consolidated Statement of Cash Flows in CanAsia's Consolidated Financial Statements. | |
3) As set out in the Consolidated Statement of Changes in Shareholders' Equity in CanAsia's Consolidated Financial Statements. |
This press release may contain forward-looking information. Forward-looking information is generally identifiable by the terminology used, such as "will", "expect", "believe", "estimate", "should", "anticipate", "potential", "opportunity" or other similar wording. Forward-looking information in this press release may include, but is not limited to, the strength of the Company's financial position; the need for and availability of additional capital; plans for development of the
By its very nature, forward-looking information requires CanAsia and its management to make assumptions that may not materialize or that may not be accurate. In addition, forward-looking information is subject to known and unknown risks and uncertainties and other factors, some of which are beyond the control of CanAsia, which could cause actual events, results, expectations, achievements or performance to differ materially. Although CanAsia believes that the expectations reflected in its forward-looking information are reasonable, it can give no assurances that those expectations will prove to be correct. CanAsia undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
Neither
SOURCE
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