TORONTO, July 16, 2002 (PRIMEZONE) -- Chell Group Corporation (Other OTC:CHEL) today announced reporting of its financial results for the quarter ended May 31, 2002. The Company's total revenue for the 2002 Third Fiscal Quarter was $20,639,179 compared to $3,492,739 for the 2001 Third Fiscal Quarter, an increase of $17,146,440 or 490%.
The Company reported a loss of $10,945,346 for the 2002 Third Fiscal Quarter compared to a loss of $2,300,221 for the 2001 Third Fiscal Quarter. The loss incurred for the quarter included interest cost of beneficial conversion features of $6,289,134 and financing costs of $2,424,091. These charges relate to the issuance of promissory notes to investors who have committed to convert this debt into equity and the conversion of certain outstanding debt into equity. Subject to shareholders approval of certain of these transactions, the Company's debt will be reduced significantly and equity will be increased. Also included in the loss reported for the quarter was a loss on the sale of a subsidiary and a loss from discontinued operations of $662,663.
Excluding the items noted above and interest and bank charges for the quarter of $269,696, the loss from operations reported for the 2002 Third Fiscal Quarter was $1,299,792.
"Although the charges reported during the quarter for financing and debt conversion were significant," quoted Stephen McDermott newly appointed CEO, "upon shareholders approval of the conversion of the newly issued convertible notes in the amount of $6,587,622 to equity, our debt will be considerably lower and our shareholders equity will reach an all time high."
About Chell Group Corporation:
Chell Group Corporation is a technology holding company in business to acquire and grow undervalued technology companies. Chell Group's portfolio includes Logicorp www.logicorp.ca NTN Interactive Network Inc. www.ntnc.com, GalaVu Entertainment Network Inc. www.galavu.com, Engyro Inc. (investment subsidiary) www.engyro.com and cDemo Inc. (investment subsidiary) www.cdemo.com. For more information on the Chell Group, visit www.chell.com.
Forward-looking statements and comments in this press release are made pursuant to safe harbor provisions of the Securities Exchange Act of 1934. Certain statements, which describe The Chell Group Corporation's intentions, expectations or predictions, are forward-looking and are subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the acceptance of Internet based application service providers in the consumer market; the impact of rapid technological and market change; general industry and market conditions and growth rates.