PrefBlog

The TSX has announced that it is:

reviewing Algo Group Inc.’s Common Shares (Symbol: AO), Convertible Redeemable Retractable Third Preferred Shares Series I (Symbol: AO.PR.A) and 6% Cumulative Redeemable Convertible Second Preferred Shares Series I (Symbol: AO.PR.B) with respect to meeting the continued listing requirements. The Company has been granted 90 days in which to regain compliance with these requirements, pursuant to the Remedial Review
Process.

Algo is not having a nice time. The most recent financials on SEDAR show a working capital deficiency and a shareholders’ equity deficiency. Their recent press release was a tale of woe:

Algo Group Inc. (TSX : AO) announced that it has recently sold certain assets of its W. Green Jeans division and as a consequence ceased operations in this division. The sale was completed with 4453166 Canada Inc., a company controlled by Mr. Warren Green. The proceeds were used by the Company to reduce the loan with its primary lender. Mr. Green, previously the Company’s Vice President, Sportswear, has terminated his employment with the Company.
At the outset of 2008, due to an administrative reorganization of Algo, the services of the Company’s Chief Financial Officer, Mr. Ken Labelle, were terminated. Additionally, due to the administrative reorganization and Algo’s financial situation, Algo was not in a position early in the year to have its auditors commence the audit fieldwork required in order to complete its annual audit. As a result, the audit of Algo’s consolidated financial statements will not be completed by March 31, 2008 and, as such, Algo will not be in a position to file its audited consolidated financial statements, related audit report and MD&A by the March 31, 2008 filing deadline applicable to reporting issuers in Canada.

AO.PR.A and AO.PR.B are not tracked by HIMIPref™

This entry was posted on Tuesday, April 15th, 2008 at 5:52 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.