Attached files
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| 8-K - FORM 8-K - CTT PHARMACEUTICAL HOLDINGS, INC. | d292010d8k.htm |
Exhibit 99
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
On December 13, 2011, the Company announced that the TSX Venture Exchange (“TSVX”) had approved the release from escrow of the common shares of Northern Graphite Corporation (“Northern”) owned by the Company to facilitate their distribution of most of their shares of Northern Graphite to shareholders. As a result, the Board of Directors declared a pro rata dividend-in-kind, payable January 25, 2012 to shareholders, whereby most of the shares of Northern owned by the Company (the “Northern Shares”) will be distributed to Mindesta shareholders.
The Company owns 9,750,000 common shares of Northern, representing approximately 26.2% of the outstanding shares of Northern, and the Board of Directors had declared a pro rata dividend-in-kind of one share of Northern for every share of Mindesta held. As at the dividend declaration date, Mindesta had outstanding 8,963,134 common shares as well as 562,500 options to purchase common shares. The dividend will not affect the number of outstanding shares of Mindesta or Northern.
The following unaudited pro forma condensed financial statements illustrate the effects of the Company distributing the pro rata dividend-in-kind, payable January 25, 2012, using information available as at the date this dividend was declared. The unaudited pro forma condensed Balance Sheet as of September 30, 2011 is presented as if this distribution had been completed on September 30, 2011. The unaudited pro forma condensed Statements of Operations for the nine months ended September 30, 2011 and the year ended December 31, 2010 are presented as if this distribution had been completed on January 1, 2010.
These unaudited pro forma condensed financial statements have been derived from and should be read in conjunction with the Mindesta Inc.’s historical consolidated and non-consolidated financial statements and accompanying notes previously filed in its Annual Report filed on Form 10-K for the year ended December 31, 2010 and Quarterly Report filed on Form 10-Q for the quarter ended September 30, 2011.The unaudited pro forma condensed financial statements are not necessarily indicative of the results of operations or financial position of the Company that would have been reported had the transaction described above been completed as of the dates presented, and are not necessarily representative of the future results of operations or financial position of the Company.
Mindesta, Inc.
Unaudited Pro Forma Condensed Balance Sheet
As at September 30, 2011
| As at | Removal | Distribution | Pro forma | |||||||||||||
| September 30 | Adjustment | Adjustment | September 30 | |||||||||||||
| 2011 | (A) | (B) | 2011 | |||||||||||||
| $ | $ | $ | $ | |||||||||||||
| Assets |
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| Current |
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| Cash |
701,617 | — | — | 701,617 | ||||||||||||
| Receivables |
151 | — | — | 151 | ||||||||||||
| Due from non-consolidated affiliate |
21,125 | — | — | 21,125 | ||||||||||||
| Prepaid expenses and deposits |
16,640 | — | — | 16,640 | ||||||||||||
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| Total current assets |
739,533 | — | — | 739,533 | ||||||||||||
| Investment in non-consolidated affiliate |
3,657,701 | 6,406,464 | (9,832,569 | ) | 231,596 | |||||||||||
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| Total Assets |
4,397,234 | 6,406,464 | (9,832,569 | ) | 971,129 | |||||||||||
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| Liabilities |
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| Current |
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| Accounts payable and accrued liabilities |
338,105 | — | — | 338,105 | ||||||||||||
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| Total liabilities |
338,105 | — | — | 338,105 | ||||||||||||
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| Stockholders’ equity |
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| Common stock 200,000,000 shares authorized, $0.0001 par value; 8,960,081 shares issued and outstanding, respectively |
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71,017 |
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— |
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— |
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71,017 |
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| Additional paid-in capital |
12,383,641 | — | — | 12,383,641 | ||||||||||||
| Accumulated other comprehensive income |
(105,985 | ) | — | — | (105,985 | ) | ||||||||||
| Deficit accumulated during exploration stage |
(8,289,544 | ) | 6,406,464 | (9,832,569 | ) | (11,715,649 | ) | |||||||||
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| Total stockholders’ equity |
4,059,129 | 6,406,464 | (9,832,569 | ) | 633,024 | |||||||||||
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| Total liabilities and stockholders’ equity |
4,397,234 | 6,406,464 | (9,832,569 | ) | 971,129 | |||||||||||
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See accompanying notes to financial statements
Mindesta Inc.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
For the nine months ended September 30, 2011
| 9 months ended |
Removal | Distribution | ||||||||||||||
| September 30 | Adjustment | Adjustment | Pro forma | |||||||||||||
| 2011 $ |
(A) $ |
(B) $ |
September 30 2011 |
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| General and administrative expenses |
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| Professional fees |
131,590 | — | — | 131,590 | ||||||||||||
| Management fees and salaries |
174,492 | — | — | 174,492 | ||||||||||||
| General and administration |
264,966 | — | — | 264,966 | ||||||||||||
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| 571,047 | — | — | 571,047 | |||||||||||||
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| Loss from operations |
(571,047 | ) | — | — | (571,047 | ) | ||||||||||
| Interest and other income |
5,700 | — | — | 5,700 | ||||||||||||
| Foreign exchange gain (loss) |
(520 | ) | — | — | (520 | ) | ||||||||||
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| Net loss |
(565,867 | ) | — | — | (565,867 | ) | ||||||||||
| Gain on deconsolidation |
6,035,839 | (6,035,839 | ) | — | — | |||||||||||
| Equity loss pick-up |
(1,293,349 | ) | 1,293,349 | — | — | |||||||||||
| Gain (loss) on revaluation of debt |
(8,250 | ) | — | — | (8,250 | ) | ||||||||||
| Impairment on investment |
— | — | (1,660,842 | ) | (1,660,842 | ) | ||||||||||
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| Net gain (loss) attributable to the company |
4,168,373 | (4,742,490 | ) | (1,660,842 | ) | (2,234,959 | ) | |||||||||
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| Retained earnings (deficit) beginning of period |
(12,457,916 | ) | 11,148,954 | — | (1,308,962 | ) | ||||||||||
| Dividend |
— | — | (8,171,727 | ) | (8,171,727 | ) | ||||||||||
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| Retained earnings (deficit) end of period |
(8,289,543 | ) | 6,406,464 | (9,832,569 | ) | (11,715,649 | ) | |||||||||
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| Net loss per share—basic and diluted |
0.47 | (0.25 | ) | |||||||||||||
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| Weighted average number of shares outstanding—basic and diluted |
8,903,015 | 8,903,015 | ||||||||||||||
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| Weighted average number of shares outstanding—diluted |
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See accompanying notes to financial statements
Mindesta Inc.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
For the year ended December 31, 2010
| Year ended | Removal | Distribution | Pro forma | |||||||||||||
| December 31 | Adjustment | Adjustment | December 31 | |||||||||||||
| 2010 | (A) | (B) | 2010 | |||||||||||||
| $ | $ | $ | $ | |||||||||||||
| General and administrative expenses |
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| Professional fees |
176,708 | (88,993 | ) | — | 87,715 | |||||||||||
| Royalties |
26,214 | (26,214 | ) | — | — | |||||||||||
| Depreciation and amortization |
70,365 | (70,365 | ) | — | — | |||||||||||
| Management fees and salaries |
442,666 | (183,334 | ) | — | 259,332 | |||||||||||
| Exploration expense |
1,044,717 | (1,044,717 | ) | — | — | |||||||||||
| General and administration |
309,474 | (201,693 | ) | — | 107,781 | |||||||||||
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| 2,070,145 | (1,615,317 | ) | — | 454,828 | ||||||||||||
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| Loss from operations |
(2,070,145 | ) | 1,615,317 | — | (454,828 | ) | ||||||||||
| Interest and other income |
18,611 | (18,611 | ) | — | — | |||||||||||
| Foreign exchange gain (loss) |
(28,861 | ) | (7,836 | ) | — | (36,697 | ) | |||||||||
| Gain on debt settlement |
487,222 | (65,454 | ) | — | 421,768 | |||||||||||
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| Net loss |
(1,593,174 | ) | 1,523,416 | — | (69,758 | ) | ||||||||||
| Net loss attributable to non-controlling interest |
(495,453 | ) | 495,453 | — | — | |||||||||||
| Impairment on investment |
— | — | (786,234 | ) | (786,234 | ) | ||||||||||
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| Net loss attributable to the company |
(1,097,721 | ) | 1,027,963 | (786,234 | ) | (855,992 | ) | |||||||||
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| Retained earnings (deficit) beginning of period |
(11,360,195 | ) | 10,122,034 | — | (1,238,161 | ) | ||||||||||
| Dividend |
(8,008,258 | ) | (8,008,258 | ) | ||||||||||||
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| Retained earnings (deficit) end of period |
(12,457,916 | ) | 11,149,997 | (8,794,492 | ) | (10,102,411 | ) | |||||||||
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| Net loss per share—basic and diluted |
(0.13 | ) | (0.10 | ) | ||||||||||||
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| Weighted average number of shares outstanding—basic and diluted |
8,472,833 | 8,472,833 | ||||||||||||||
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See accompanying notes to financial statements
BASIS OF PROFORMA PRESENTATION
Notes to Unaudited Pro Forma Condensed Financial Statements for the nine months ending September 30, 2011:
| (A) | Reflects the adjustments to the Company’s historical balance sheet for the removal of accounting treatment related to the Company accounting for its investment in Northern using the equity method resulting from the distribution of the dividend-in-kind to shareholders. |
| (B) | Reflects an estimated net loss, on the distribution of the dividend-in-kind: |
| Fully diluted number of shares of Mindesta |
9,525,634 | |||
| Closing price of NGC on Dec 12, 2011 |
$ | 0.88 | ||
| Cda/US $ exchange rate Dec 12, 2011 |
0.9748 | |||
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| Fair market value dividend distribution |
$ | 8,171,727 | ||
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| Value of investment in Northern Graphite |
$ | 9,832,569 | ||
| Fair market value of dividend distribution |
8,171,727 | |||
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| Impairment on investment |
$ | 1,660,842 | ||
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Notes to Unaudited Pro Forma Condensed Financial Statements for the year ending December 31, 2010:
| (A) | Reflects the adjustments to the Company’s historical statement of operation for the removal of accounting treatment related to the Company accounting for its investment in Northern using the consolidation method resulting from distribution of the dividend-in-kind to shareholders. |
| (B) | Reflects an estimated net loss, on the distribution of the dividend-in-kind: |
| Fully diluted number of shares of Mindesta |
9,335,081 | |||
| Closing price of NGC on Dec 12, 2011 |
$ | 0.88 | ||
| Cda/US $ exchange rate Dec 12, 2011 |
0.9748 | |||
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| Fair market value dividend distribution |
$ | 8,008,258 | ||
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| Value of investment in Northern Graphite |
$ | 8,794,492 | ||
| Fair market value of dividend distribution |
8,008,258 | |||
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| Impairment on investment |
$ | 786,234 | ||
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