Canbras Announces Third Quarter Results.MONTREAL -- Canbras Communications Corp. (NEX NEX abbr. Navy exchange BOARD:CBC (1) (Cell Broadcast Center) See cell broadcast. (2) (Cipher Block Chaining) In cryptography, a mode of operation that combines the ciphertext of one block with the plaintext of the next block. .H) ("Canbras" or the "Corporation") today released unaudited interim consolidated financial results for the third quarter of 2005. As the Corporation completed the sale of all of its operations in December 2003 (the "Sale Transaction") to Horizon Cablevision do Brasil, S.A. ("Horizon") pursuant to a share purchase agreement ("SPA"), the Corporation's unaudited interim consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge for the third quarter of 2005 reflect only the winding up activities of the Corporation. Such unaudited interim consolidated financial statements are attached hereto here·to adv. To this document, matter, or proposition. hereto Adverb Formal or law to this place, matter, or document Adv. 1. and readers are encouraged to refer to them for additional details. E[acute accent acute accent n. A mark (´) indicating: a. that a vowel is close or tense, as é in French été. b. that a vowel or syllable has a high or rising pitch, as in Chinese or Ancient Greek. c. ]Further Distributions to Shareholders E[acute accent]As disclosed in connection with the August 11, 2005 release of Canbras' second quarter results, the Corporation expects to make two additional distributions to shareholders totaling approximately $0.28 per share ($15.4 million in the aggregate) following receipt by the Corporation of updated tax clearance certificates. The first of the two distributions is expected to take place before the end of 2005 and to be in an amount to be determined at the time such distribution is declared. Canbras now believes that the earliest date by which it will be able to make a final distribution to shareholders is June 30, 2007, one year later than previously estimated due to newly anticipated delays in resolving contingent claims Contingent claim A claim that can be made only if one or more specified outcomes occur. against the Company. E[acute accent]The foregoing dates and amounts are based on a number of important assumptions and delays or reductions could be significant. For a discussion of the factors that could cause delays or reductions, readers are encouraged to refer to the Corporation's Interim Report to Shareholders for the Third Quarter of 2005. E[acute accent]Third Quarter Results E[acute accent]As at September 30, 2005, Canbras' shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was $16,253 thousand down from $16,374 thousand at June 30, 2005. This decrease reflects the net loss of $121 thousand for the third quarter of 2005 comprised of administrative expenses which were partially offset by interest income. Administrative expenses of $213 thousand for the period were comprised mainly of professional fees of $172 thousand, as well as office costs and other administrative expenses of $41 thousand. During the third quarter of 2005, the Corporation recorded interest income of $93 thousand. E[acute accent]Canbras' cash, cash equivalents and temporary investments as at September 30, 2005 were $16,523 thousand up from $7,086 thousand at June 30, 2005. The increase was due principally to the receipt in cash of a note receivable note receivable A debt due from borrowers and evidenced by a written promise of payment. Note receivable, an entry on the asset side of many corporate balance sheets, indicates the dollar amount of loans due to be repaid by borrowers. associated with the Sale Transaction of $9,500 thousand, partially offset by cash required for operations. Cash, cash equivalents and temporary investments held by the Corporation pending shareholder distributions are being invested in high-grade High-grade Credit quality of AAA or AA. high-grade Of, relating to, or being a bond with little risk of default on the part of the issuer. High-grade is usually reserved for bonds rated AAA or AA by the rating services. money market instruments Money market instruments See: Cash investments . E[acute accent]Accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. were $294 thousand at September 30, 2005, compared to $240 thousand at June 30, 2005. The increase is mainly due to the accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. of professional fees. E[acute accent]At September 30, 2005, $5,945 thousand was being held in temporary investments compared to nil at June 30, 2005. This increase is attributable to a lengthening lengthening (lengkˑ·the·ning), n the use of various massage or muscle energy techniques to relax and stretch muscle and connective tissue. of the maturity profile for part of the Corporation's investment portfolio as these amounts are not anticipated to be required until 2006. The amount of $10,578 thousand being held in the form of cash and cash equivalents at the end of the third quarter is expected to be used principally for a shareholder distribution prior to the end of 2005. E[acute accent]Estimated Future Net Assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. E[acute accent]Estimated future net assets at June 30, 2007, the earliest date by which Canbras now believes it will be able to make a final distribution to shareholders, are $15.4 million ($0.28 per share), prior to any such distributions. This amount reflects Canbras' net assets as at September 30, 2005 of $16.2 million less estimated net costs of wind-up and assumes no unforeseen claims against the Corporation will arise. E[acute accent]Estimated future net assets at June 30, 2007 of $15.4 million have declined by $127 thousand from the estimate of future net assets at June 30, 2006 made on August 11, 2005 in connection with the Corporation's 2005 second quarter financial results due to the later than previously foreseen fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. final distribution date. E[acute accent]Forward looking statements E[acute accent]This news release may contain certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that reflect the current views and/or expectations of Canbras with respect to future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future events, and may contain words like "believe" "anticipate", "expect", "will likely result", or words or phrases of similar meaning. Such statements are subject to a number of important risks and uncertainties which are difficult to predict and assumptions which may prove to be inaccurate. Whether actual events and developments conform with the Corporation's expectations and predictions are subject to a number of known and unknown risks and uncertainties. For additional information with respect to risk factors relevant to Canbras, see the Corporation's 2004 Annual Report, Interim Report to Shareholders for the Third Quarter of 2005 and other documents filed with Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. Securities Commissions. Canbras disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Canbras Communications Corp
Consolidated Balance Sheets
(in thousands of Canadian dollars)
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Unaudited
As at As at
September 30 December 31
2005 2004
---------------- ---------------
Assets
Current assets
Cash and cash equivalents $10,578 $268
Temporary investments (note 3) 5,945 6,999
Note and accrued interest
receivable (note 4) - 10,678
Prepaid expenses and other 24 82
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$16,547 $18,027
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Liabilities
Current liabilities
Accounts payable and
accrued liabilities (note 4) $294 $803
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Shareholders' equity
Capital stock (note 5) 266,112 266,112
Contributed surplus 61 61
Deficit (249,920) (248,949)
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16,253 17,224
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$16,547 $18,027
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Sale of operations (notes 1 and 4)
Commitments and contingencies (note 8)
Canbras Communications Corp
Consolidated Interim Statements of Operations (Unaudited)
(in thousands of Canadian dollars, except per share amounts)
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Three Months ended Nine Months ended
September 30, September 30,
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2005 2004 2005 2004
---------- --------- ---------- ---------
Legal, auditor and other
professional fees $(172) $(38) $(511) $(287)
Office and administrative
expenses (41) (147) (141) (563)
Interest income 93 330 420 1,047
Foreign exchange and other (1) 38 - 8
Loss on settlement of
note receivable (note 4) - - (739) -
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Net (loss) earnings $(121) $183 $(971) $205
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(Loss) earnings
per share - basic and
diluted (note 5) $(0.00) $0.00 $(0.02) $0.00
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Weighted average number
of shares outstanding
(note 5) 55,098,071 55,098,071 55,098,071 55,098,071
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Canbras Communications Corp
Consolidated Interim Statements of Deficit (Unaudited)
(in thousands of Canadian dollars)
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Three Months Nine Months
ended ended
September 30, September 30,
-------------------------------------------
2005 2004 2005 2004
------- ------- ------- -------
Deficit, beginning of
period,
as previously
reported $(249,799) $(248,407) $(248,949) $(248,372)
Cumulative effect
on prior years
of change in
accounting
policy for
stock-based compensation - - - (57)
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Deficit, beginning
of period, as
restated (249,799) (248,407) (248,949) (248,429)
Net (loss) earnings
for the period (121) 183 (971) 205
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Deficit, end of
period $(249,920) $(248,224) $(249,920) $(248,224)
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Canbras Communications Corp
Consolidated Statements of Cash Flows (Unaudited)
(in thousands of Canadian dollars)
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Three Months ended Nine Months ended
September 30, September 30,
----------------------------------------
2005 2004 2005 2004
------- ------- ------- -------
Cash (used for) provided
by operating activities
Net earnings (loss) $(121) $183 $(971) $205
Items not affecting cash
Foreign exchange and other - (1) - 17
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$(121) 182 $(971) 222
Changes in non-cash
working capital items
(note 6) 9,558 (254) 10,227 (2,552)
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9,437 (72) 9,256 (2,330)
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Cash provided by
investing activities
(Increase) decrease in
temporary investments (5,945) - 1,054 -
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(5,945) - 1,054 -
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Effect of exchange rate
changes on cash and
cash equivalents - 2 - (14)
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Net increase (decrease)
in cash and cash
equivalents 3,492 (70) 10,310 (2,344)
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Initial distribution
to shareholders - (11,571) - (11,571)
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Cash and cash equivalents,
beginning of period 7,086 19,047 268 21,321
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Cash and cash equivalents,
end of period $10,578 $7,406 $10,578 $7,406
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(See note 6 for supplementary cash flow information)
E[acute accent]Canbras Communications Corp. Notes to the Interim Consolidated Financial Statements (Unaudited) Nine months period ended September 30, 2005 (All tabular tab·u·lar adj. 1. Having a plane surface; flat. 2. Organized as a table or list. 3. Calculated by means of a table. tabular resembling a table. dollar amounts in thousands of Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents , except per share amounts) --------------------------------------------------------------------- E[acute accent]1. Description of the business and basis of presentation E[acute accent]Canbras Communications Corp. (the "Corporation" or "Canbras"), originally incorporated under the laws of British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography on August 7, 1986, was continued under the Canada Business Corporations Act The Canada Business Corporations Act, also known as Bill C-44, is a Canadian act respecting Canadian business corporations. See also
BCI Brain-Computer Interface BCI Business Continuity Institute BCI Business Cycle Indicators BCI Banco de Credito e Inversiones (Chilean bank) BCI Bell Canada International "). Canbras, through its subsidiaries (collectively the "Canbras Group") was engaged in the acquisition, development and operation of broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). communications services in Brazil including cable television ("CATV (Community Antenna TV) The original name for cable TV. It used a single antenna at the highest location in the community in order to deliver a quality signal to homes in areas with hilly terrain or other interference. "), Internet access See how to access the Internet. and data services. E[acute accent]On October 8, 2003, the Corporation announced that, pursuant to the sale process commenced by it in 2002, it had entered into definitive agreements for the sale of all of its operations to Horizon Cablevision do Brasil S.A. ("Horizon"). Subsequently, on December 24, 2003, the Corporation announced that following the receipt of the requisite approval of Canbras' shareholders at the special shareholders' meeting shareholders' meeting n. a meeting, usually annual, of all shareholders of a corporation (although in large corporations only a small percentage attend) to elect the Board of Directors and hear reports on the company's business situation. held on December 17, 2003, the Corporation had completed the sale of all of its operations to Horizon (the "Sale Transaction"). In addition, the Corporation also obtained the requisite shareholder approval to wind-up and dissolve A Web site design technique borrowed from the film and video industry in which the transition between two Web pages is represented visually by one page fading into another. Also known as a "soft cut," the result is achieved in the HTML coding of the images to gradual pre-determined the Corporation following the final distribution to shareholders of the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). received by the Corporation from the Sale Transaction (see note 4). On January 14, 2004, following the filing by Canbras of a Statement of Intent to Dissolve, the Corporation was issued, by the Director under the Canada Business Corporations Act, a Certificate of Intent to Dissolve and, upon conclusion of the winding up process, Canbras intends to apply for a Certificate of Dissolution Act or process of dissolving; termination; winding up. In this sense it is frequently used in the phrase dissolution of a partnership. The dissolution of a contract is its Rescission by the parties themselves or by a court that nullifies its binding force and reinstates each . E[acute accent]The unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2004 as set out in the 2004 Annual Report of the Corporation, prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting in Canada ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). Capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. terms used herein, and not otherwise defined, have the meanings defined in the 2004 Annual Report of the Corporation. E[acute accent]2. Significant accounting policies E[acute accent]In the opinion of the Corporation, the unaudited interim consolidated financial statements have been prepared on a basis consistent with the annual audited financial statements, and contain all adjustments necessary for a fair presentation of the financial position as at September 30, 2005 and the results of operations and cash flows for the three and nine months ended September 30, 2005 and 2004, respectively. E[acute accent]The preparation of financial statements in accordance with Canadian generally accepted accounting principles requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities, the recognition of revenues and expenses, and the disclosure of contingent assets Contingent Asset An asset in which the possibility of ownership depends solely upon future events uncontrollable by the company. Notes: An example might be a settlement from a lawsuit. See also: Asset, Balance Sheet, Contingent Liability, Liability and liabilities. Actual results could differ from those estimates. E[acute accent](a) Cash and cash equivalents E[acute accent]The Corporation considers all highly liquid investments, with a term to maturity of three months or less when purchased, to be cash equivalents. E[acute accent](b) Temporary investments E[acute accent]Temporary investments may consist of treasury bills, bankers' acceptances A bankers' acceptance, or BA, is a time draft drawn on and accepted by a bank. Before acceptance, the draft is not an obligation of the bank; it is merely an order by the drawer to the bank to pay a specified sum of money on a specified date to a named person or to the and commercial paper with an initial maturity date greater than three months at the date of acquisition which the Corporation intends to hold to maturity. The temporary investments are carried at cost with discounts or premiums arising on purchase amortized to maturity. E[acute accent]2. Significant accounting policies (cont'd) E[acute accent](c) Financial Instruments E[acute accent]The Canadian Institute of Chartered Accountants The Canadian Institute of Chartered Accountants (CICA) is the umbrella body for the Chartered Accountant profession in Canada and Bermuda. Membership of the CICA totals 70,000 Chartered Accountants and 8,500 students. ("CICA CICA Competition In Contracting Act of 1984 (USA) CICA Canadian Institute of Chartered Accountants CICA Competition In Contracting Act CICA Criminal Injuries Compensation Authority (UK) ") recently issued revisions to section 3860 of the CICA Handbook
This article is about reference works. For the subnotebook computer, see .
E[acute accent]These revisions came into effect on January 1, 2005. Because Canbras does not have any instruments with these characteristics, adopting this section on January 1, 2005 did not affect the unaudited interim consolidated financial statements of the Corporation. E[acute accent]For a complete description of the Corporation's significant accounting policies, refer to Canbras' consolidated financial statements for the year ended December 31, 2004. E[acute accent]3. Temporary Investments E[acute accent]As at September 30, 2005, the Corporation had investment grade commercial paper in the amount of $5,945,000. The commercial paper matures at varying dates to January 26, 2006. The effective yields on the commercial paper range from 2.65% to 2.80%. At September 30, 2005, the estimated fair value of the commercial paper amounted to $5,949,000. E[acute accent]4. Note receivable E[acute accent]Pursuant to the Sale Transaction, Canbras sold to Horizon all of its equity and debt interests in its subsidiary Canbras Participacoes Ltda. ("CPAR CPAR Canadian Physicians for Aid and Relief CPAR Country Procurement Assessment Review (World Bank) CPAR Contractor Performance Assessment Report CPAR Center for Public Affairs Research CPAR Corrective Preventive Action Request "). Through CPAR, Canbras held substantially all of its interests in its broadband subsidiaries operating in the Greater Sao Paulo and surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. areas, including all of its interests in its core subsidiary, Canbras TVA TVA: see Tennessee Valley Authority. Cabo Ltda. Canbras received gross proceeds of $32,600,000, comprised of $22,168,000 in cash and a one year promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. in the original principal amount of $10,432,000, bearing interest at 10% (the "Note") due December 19, 2004. The Note was issued by CPAR and guaranteed by Horizon, and the amount of the Note was subject to reduction in respect of indemnification Indemnification Used in insurance policy agreements as to compensation for damage or loss. In the context of corporate governance, Director Indemnification uses the bylaws and/or charter to indemnify officers and directors from certain legal expenses and judgements resulting from obligations of the Corporation under the sale agreement entered into with Horizon (the "SPA"). E[acute accent]As of December 20, 2004, the deadline for the filing of such claims, the Corporation had received written notices from Horizon asserting as·sert tr.v. as·sert·ed, as·sert·ing, as·serts 1. To state or express positively; affirm: asserted his innocence. 2. To defend or maintain (one's rights, for example). claims for indemnification under the SPA in an aggregate amount of R$58.1 million, or approximately $30.2 million at the June 30, 2005 exchange rate. The Horizon notices stated that it was reserving its rights to supplement, review, adjust and otherwise modify its claims in accordance with the SPA. E[acute accent]Under the terms of the SPA, the Corporation's indemnification obligations were limited to the balance of the purchase price due under the SPA, which balance was represented by the Note, plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. thereon there·on adv. 1. On or upon this, that, or it. 2. Archaic Following that immediately; thereupon. Adv. 1. thereon - on that; "text and commentary thereon" on it, on that at 10% per annum Per annum Yearly. . E[acute accent]Based on analyses of the Horizon Claims as well as Canbras' analysis of Horizon's ability to pay the amounts that may come due under the Note, the Note and accrued interest thereon were recorded on Canbras' consolidated balance sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. at December 31, 2004 at a value of $10.7 million which was net of a provision for loss of $0.8 million recorded during the fourth quarter of 2004. On July 21, 2005, the Corporation announced that it received $9.5 million in cash in exchange for the cancellation of the Note and final settlement of all present or future indemnification claims of Horizon in connection with the Sale Transaction (the "Horizon Settlement"). Accordingly, because the amount at which the Note was settled was known prior to the date the financial statements for the second quarter of 2005 were released, a net loss of $739 thousand was recorded in the second quarter of 2005, which loss was net of certain liabilities related to the Sale Transaction that were included in the March 31, 2005 balance sheet in the amount of $678 thousand which were no longer required.
5. Capital stock
Capital stock is comprised of the following:
(a) Authorized
An unlimited number of common shares
(b) Issued and outstanding
Number Amount
---------------------------
Balance at December 31, 2004 55,098,071 $ 266,112
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Balance at September 30, 2005 55,098,071 $ 266,112
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E[acute accent](c) Stock options E[acute accent]At September 30, 2005, 520,300 stock options were outstanding, all of which were exercisable. The stock options are exercisable on a one-for-one basis for common shares of the Corporation. The total stock options outstanding have exercise prices ranging from $4.00 to $11.75 per share over the remaining term of the options of between 1.25 to 3.25 years. As a result of the consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the Horizon Sale in December 2003, the Corporation's Board of Directors determined that no stock options would be issued by the Corporation at and after January 1, 2004.
6. Supplemental cash flow information
---------------------------------------------
---------------------------------------------
Three Months ended Nine Months ended
---------------------------------------------
September 30, September 30,
---------------------------------------------
---------------------------------------------
2005 2004 2005 2004
-------- --------- --------- ---------
Changes in non-cash
working capital items
Note and accrued
interest receivable $ 9,500 $ (262)$ 10,678 $ (781)
Prepaid expenses
and other 4 83 58 360
Accounts payable and
accrued liabilities 54 (75) (509) (2,131)
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Source (use) of cash $ 9,558 $ (254) $ 10,227 $ (2,552)
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E[acute accent]7. Financial instruments E[acute accent](a) Concentration of credit risk E[acute accent]The Corporation's financial assets Financial assets Claims on real assets. that are exposed to credit risk consist primarily of cash and cash equivalents and temporary investments. Credit risk is minimized substantially by ensuring that these financial assets are invested in treasury bills, bankers' acceptances and commercial paper with investment grade credit ratings. In addition, dollar limits are established on a per investment basis. E[acute accent](b) Fair value of financial instruments E[acute accent]The fair value of cash and cash equivalents, temporary investments and current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. approximates their carrying amount, given their relatively short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. to maturity. E[acute accent]8. Commitments and Contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. E[acute accent]The Corporation has provided indemnification to its officers and directors, and former officers and directors, against costs, charges and expenses, including amounts paid to settle an action or satisfy a judgment, reasonably incurred by the individual in respect of any civil, criminal or other proceeding to which such individual may be made a party by reason of his association with the Corporation.The Corporation is obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to indemnify To compensate for loss or damage; to provide security for financial reimbursement to an individual in case of a specified loss incurred by the person. Insurance companies indemnify their policyholders against damage caused by such things as fire, theft, and flooding, which such individuals to the extent that they acted honestly and in good faith with a view to the Corporation's best interest and had reasonable grounds for believing their conduct was lawful Licit; legally warranted or authorized. The terms lawful and legal differ in that the former contemplates the substance of law, whereas the latter alludes to the form of law. A lawful act is authorized, sanctioned, or not forbidden by law. , all as permitted by the Canada Business Corporations Act. In addition, the Corporation has provided indemnification, on substantially the same terms and conditions, to certain persons who had served at the Corporation's request as directors or managers of certain of its former subsidiaries operating in Brazil. These indemnification obligations are not subject to any dollar limit. In May 2004, the Corporation received requests for indemnification in respect of legal fees and related expenses to be incurred by two individuals who formerly served as directors or managers of certain of the Corporation's former Brazilian subsidiaries in connection with certain legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. brought in Brazil against the previous owners of such subsidiaries. To date, none of these former Brazilian subsidiaries nor the two individuals have been directly named in the Brazilian legal proceedings, however, there can be no assurance at this time that they will not ultimately be made parties to such legal proceedings. As a result, the Corporation is paying the legal fees and related expenses in connection with the monitoring of these Brazilian legal proceedings on behalf of such individuals. The Corporation is expensing these costs as incurred. E[acute accent]During the fourth quarter of 2004, a former employee commenced legal proceedings against the Corporation and affiliates of the Corporation relative to an alleged promise of employment with its affiliates following termination of employment "Fired" and "Firing" redirect here. For other uses, see Fired (disambiguation) and Firing (disambiguation). “Gross misconduct” redirects here. For the ice hockey term, see Penalty (ice hockey). with the Corporation. The Corporation has included a provision in the consolidated financial statements for the estimated amount of its potential liability for this claim. With the exception of such provisional Temporary; not permanent. Tentative, contingent, preliminary. A provisional civil service appointment is a temporary position that fills a vacancy until a test can be properly administered and statutory requirements can be fulfilled to make a permanent appointment. amount, the Corporation believes the claim is without merit and will defend its position vigorously. However, there can be no assurance that such provision is sufficient to cover the Corporation's ultimate liability for such claim. E[acute accent]9. Comparative figures E[acute accent]Certain comparative figures have been reclassified to conform with the presentation adopted in 2005. E[acute accent]The TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. does not accept responsibility for the ad equacy or accuracy of this release. E[acute accent]CANBRAS COMMUNICATIONS CORP. (NEX BOARD:CBC.H) |
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