SEOUL, SOUTH KOREA — (Marketwired) — 11/25/14 — Nesscap Energy Inc. (“Nesscap”) (TSX VENTURE: NCE), a global leader in research, development and manufacturing of ultracapacitor products, reported its financial results for the third quarter ended September 30, 2014.
Revenue for the three-month period was USD 5.1 million representing a 1.2% increase compared to the same period last year. Revenue for the nine month period, ended September 30, 2014, increased by 32% to USD 16.2 million from USD 12.3 million for the same period in the previous year. Sales from customers in the industrial and renewable energy sectors continued to show strength along with steady growth from the automotive sector. Gross profit margin for the third quarter improved to 21%, compared to 12% in the same quarter last year, as a result of changes in product mix.
Net loss for the quarter ended September 30, 2014 was USD 0.8 million or $0.004 per share compared to a net loss of USD 2.0 million or $0.009 per share in the same period in 2013. The decrease in net loss is due mainly to increases in gross profit margin and foreign currency gains and partially offset by an increase in finance costs.
At September 30, 2014, the Company had cash and cash equivalents equal to USD 3.3 million and working capital of USD 14.9 million.
“This was another solid quarter,” said Jim Zuidema, Chief Executive Officer (Acting) of Nesscap. “Through the first three quarters of 2014 we have already achieved nearly all of last year–s revenue performance and continue to see strong demand for our products. We look forward to continuing to provide our customers with advanced technologies and industry leading solutions.”
Nesscap is also pleased to announce that Mr. Jurgen Auer, Managing Director of Nesscap Energy GmbH, has been promoted to Managing Director & Vice President of EMEA Sales & Business Development. In this role, Mr. Auer will lead initiatives to develop new business, promote new markets and applications for Nesscap–s products, and continue to drive sales across the region.
The Company remains engaged with Marathon Capital LLC, as exclusive advisor, in connection with a proposed equity financing in which existing shareholders, I2BF Energy Limited and Arbat Capital Group Ltd., have agreed to participate with a minimum subscription amount of USD 10 million.
The Company recently announced it has mutually agreed with Open Joint Stock Company RUSNANO (RUSNANO) to cancel the Investment Agreement dated September 29, 2011 (the Investment Agreement) under which RUSNANO invested USD 19 million for 50,955,000 common shares of Nesscap. Under the terms of the Investment Agreement, USD 15 million has been held in escrow to be used for the establishment of ultracapacitor production and R&D facilities in the Russian Federation (the Escrowed Funds). The remainder was used for the expansion of Nesscap–s operations in Korea and for general corporate purposes.
Nesscap and RUSNANO have agreed to cancel their respective obligations under the Investment Agreement and all ancillary agreements after being unable to jointly develop a viable business plan for establishment of Russian operations. Nesscap will return the Escrowed Funds to RUSNANO in exchange for 33,970,000 common shares, currently held by Rusnano (the Transaction). RUSNANO will continue to hold 16,985,000 common shares of Nesscap and be a valued partner in any future ventures in the Russian Federation.
A special meeting of the shareholders of Nesscap will be held on December 16, 2014 to approve the Transaction. All shareholders of Nesscap, except Rusnano, will have the opportunity to vote on the Transaction. Nesscap has been informed that I2BF Energy Ltd. (I2BF) and Arbat Capital Group Ltd. (Arbat) intend to vote in favour of the Transaction. Together, I2BF and Arbat currently own approximately 80,745,741 common shares of Nesscap representing 46.0% of the common shares eligible to vote at the meeting. In addition, the Transaction is also subject to regulatory approval, including obtaining certain exemptive relief from the issuer bid requirements under applicable securities law, from the Ontario Securities Commission.
Nesscap continues to focus on developing its largest regional markets in Europe and China while strengthening its overall position as a technology leader in the ultracapacitor industry. The strategic focus for the Company includes transportation, renewable energy, industrial applications and consumer electronics. Nesscap plans to increase investments in technology, direct and indirect sales channels, market development, and production capacity.
The financial statements for the third quarter of fiscal 2014 and related MD&A have been filed on SEDAR and can be found at .
About Nesscap
Since its inception in 1999, Nesscap Energy Inc. has become an award winning global leader in technology innovation and product development of ultracapacitors. Attributes of the ultracapacitor allow for the technology to be used in applications where power, life cycle requirements, or environmental conditions limit the suitability of batteries or capacitors. Nesscap products are available in both cells and modules and are used to enhance the performance of modern applications ranging from portable electronic devices to high performance windmills and high-tech –green– cars. Nesscap features the widest array of standard commercial products in the market from 3 farads to 6,200 farads with industry recognized alternative organic electrolytes. Customers of the Company include transportation, power, and consumer markets. Technical and sales information can be found at .
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) has in any way approved or disapproved of the contents of this press release.
Forward-Looking Statements
Included in this news release are matters that constitute “forward-looking” information within the meaning of Canadian securities law. Such forward-looking statements may be identified by words such as “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may” or words of a similar nature. 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, regulatory risks, risk inherent in foreign operations, commodity prices and competition. Most of these factors are outside the control of the Company. All subsequent forward-looking statements attributable to the Company or its agents are expressly qualified in their entirety by these cautionary comments. 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.
Contacts:
Nesscap Energy Inc.
Debbie Bamforth
Corporate Communications
905-599-3322
Nesscap Energy Inc.
Jim Zuidema
Chief Executive Officer (Acting)
Chief Financial Officer
845-652-0833