Aberdeen Reports Shareholders' Equity of $0.36 Per Share and First Quarter Financial Results
TORONTO, ONTARIO--(Marketwired - Jun 19, 2017) - Aberdeen International Inc. ("Aberdeen", or the "Company") (TSX:AAB) is pleased to announce that it has released its financial results for the quarter ended April 30, 2017.
Highlights:
- Total revenue of $(2.5) million, including unrealized losses on investments of $(2.3) million during the financial quarter;
- Net loss for the three months ended April 30, 2017 was $(3.0) million or $(0.03) per basic share;
As at April 30, 2017, Aberdeen's shareholders' equity and net asset value ("NAV") was $31.7 million, or $0.36 per share. Given the nature of Aberdeen's operations, there is currently no difference between "shareholder equity" and "net asset value" for Aberdeen.
| April 30, 2017 | January 31, 2017 | April 30, 2016 | ||||||
| Shares outstanding | 88,912,282 | 88,912,282 | 95,536,517 | |||||
| $ | $/Shares | $ | $/Shares | $ | $/Shares | |||
| Cash on hand | 1,492,739 | 0.017 | 626,293 | 0.007 | 5,159,689 | 0.054 | ||
| Investments | ||||||||
| Publicly traded | 11,414,174 | 0.128 | 17,011,407 | 0.191 | 18,155,669 | 0.190 | ||
| Private | 14,131,890 | 0.159 | 15,614,855 | 0.176 | 17,625,252 | 0.185 | ||
| Non-trading warrants | ||||||||
| Intrinsic value | 312,000 | 0.004 | 288,000 | 0.003 | - | - | ||
| Option value | 12,240 | 0.000 | 44,880 | 0.000 | 420,570 | 0.004 | ||
| 324,240 | 0.004 | 332,880 | 0.003 | 420,570 | 0.004 | |||
| Portfolio Investments | 25,870,304 | 0.291 | 32,959,142 | 0.370 | 36,201,491 | 0.379 | ||
| Loans | 3,513,375 | 0.040 | 1,659,030 | 0.019 | - | - | ||
| Total | 30,876,418 | 0.348 | 35,244,465 | 0.396 | 41,361,180 | 0.433 | ||
For the three months ended April 30, 2017, Aberdeen reported net loss of $(3.0) million or $(0.03) per basic share on total revenue of $(2.5) million. Revenue was comprised of $(2.6) million from net investment losses and $0.1 million from interest income. For the three months ending April 30, 2016, Aberdeen reported net earnings of $12.7 million or $0.13 per basic share on total revenue of $13.6 million ($13.5 million from net investment gains and $0.1 million from dividend income and advisory fees). This period's net loss largely reflects the unrealized losses on the Company's investment portfolio and general, administration and operating expenses for the three months ended April 30, 2017. Whereas last year's net earnings reflect the sale of 50% of the common shares of Potasio y Litio Argentina SA.
NORMAL COURSE ISSUER BID
The Company is renewing its Normal Course Issuer Bid ("NCIB"), subject to Toronto Stock Exchange ("Exchange") approval, to buy back its common shares through the facilities of the Exchange. Any purchases made pursuant to the NCIB will be made in accordance with the rules of the TSX and in some instances may be effected through alternative Canadian trading systems and will be made at the market price of the common shares at the time of the acquisition.
The Board of Directors of Aberdeen believes that the underlying value of the Company is not reflected in the current market price of its common shares, and may not be so reflected at certain times during the course of the NCIB, and has thus concluded that the repurchase and cancellation of common shares pursuant to the proposed NCIB presently constitutes an appropriate use of financial resources and would be in the best interest of Aberdeen shareholders.
The maximum number of common shares that may be purchased for cancellation pursuant to the NCIB is that number of common shares that represents 10% of the common shares in the public float. Based on the 62,920,782 common shares in the public float as at June7, 2017, the maximum number of shares to be purchased and cancelled would be 6,292,078. Aberdeen notes that the number of its shares in the public float is less than the 88,912,282 total basic issued and outstanding Aberdeen common shares as of June 6, 2017 because the public float number does not include 25,991,500 common shares held by Aberdeen reporting insiders. Daily purchases will be limited to 23,093 common shares other than block purchase exceptions. This number represents 25% of the average daily trading volume for the six month period from November 2016 to May 2017 being 92,375 common shares. The actual number of common shares that would be purchased, if any, and the timing of such purchases will be determined by Aberdeen considering market conditions, share price, its cash position, and other factors including other investment opportunities. Aberdeen had a previous NCIB, which terminated effective March 9, 2017, pursuant to which Aberdeen purchased 6,616,846 securities at a weighted average price of $0.18.
Purchases under the NCIB are permitted to commence on June 20, 2017 and will terminate on June 19, 2018 or the date upon which the maximum number of common shares have been purchased by Aberdeen pursuant to the NCIB. There cannot be any assurance as to how many common shares, if any, will ultimately be acquired by Aberdeen under the NCIB. Aberdeen intends that any shares acquired pursuant to the NCIB will be cancelled.
Aberdeen will make no purchases of common shares other than open market purchases that may be made during the period that the NCIB is outstanding.
ABOUT ABERDEEN INTERNATIONAL
Aberdeen International is a global resource investment company and merchant bank focused on small capitalization companies in the mining and metals sector.
For additional information, please visit our website at www.aberdeeninternational.ca and follow us on Facebook, Twitter and Linkedin.
Cautionary Notes
Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding the financial results of Aberdeen; past success as an indicator of future success; net asset value of the Company; the potential of investee companies and the appreciation of their share price; the future intentions of the Company with regard to its investments; the Company's plan of business operations; and anticipated returns. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, competition, financing risks, acquisition risks, risks inherent in the mining industry, and regulatory risks. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
Contact
Stan Bharti
Interim President and Chief Executive Officer
Aberdeen International Inc.
+1 416-861-2267
stan@forbesmanhattan.com