NaiKun Wind Releases Year-End Financial Results (Canada)

NaiKun Wind Energy Group Inc. (TSX-Venture: NKW) today announced its financial results for the year ended September 30, 2010, a fiscal period during which the Company undertook a substantial restructuring effort and conducted a strategic review to determine the optimal path forward for maximizing shareholder value.

The strategic review concluded with the Board of Directors (the “Board”) providing direction to management to continue to pursue development of the Company’s offshore wind project in northwest British Columbia. The Board will be reviewing progress with the project’s development on a quarterly basis, including advancement toward obtaining an electricity supply contract.

“The NaiKun Wind project has a wide variety of unique benefits to offer the people of British Columbia,” said Michael O’Connor, NaiKun Wind’s President and CEO. “The NaiKun Wind team is confident that the Company’s recent undertakings, including our corporate restructuring and new strategies for procuring an electricity supply contract, represent the best available opportunities to support the advancement of the project and maximize shareholder value,” he added.

The corporate restructuring conducted during the final two quarters of the fiscal year is now complete and spending by NaiKun Wind going forward will be substantially lower as a result. The Company’s estimated cash requirement for operations in the year ending September 30, 2011 is $1.5 million. On this basis, the Company has sufficient financial resources to sustain operations into 2014 and beyond.

An overview of NaiKun Wind’s corporate restructuring and year-end results include:

* As at September 30, 2010, NaiKun Wind had $7.78 million in cash and cash equivalents, compared to $14.29 million at the end of September 2009. In addition to this $7.78 million in cash, NaiKun Wind has $0.96 million in receivables and loan receivables, the proceeds of which the Company expects to receive by May 2011.

* Effective April 1, 2010, as stated in the Company’s news release of May 20, 2010, compensation to members of the Board was reduced by 50%. As part of the newly lowered compensation it was also decided that going forward 25% of compensation would be paid in the form of Company shares in lieu of cash. Accordingly, the Company issued 71,694 shares for the quarter ended June 30, 2010, and 76,176 shares for the quarter ended September 30, 2010.

* For the fiscal year, NaiKun Wind incurred a net loss of $5.82 million ($0.15 per share), compared to $11.77 million ($0.30 per share) for the year ended September 30, 2009.

As electricity demand in British Columbia continues to grow and the supply from certain BC Hydro programs continues to experience significant attrition, the Company believes there will be a need for BC Hydro to procure appreciably more generation in the near term, to meet the legislated Provincial self-sufficiency targets, to fulfill electricity export goals and to meet legislated Green House Gas obligations. The NaiKun Wind project is at an advanced stage of development and would provide diverse and substantial employment opportunities (particularly on the Province’s north coast and on Haida Gwaii), abundant clean energy and would also help to close the Province’s growing electricity supply/demand gap.

NaiKun recently issued a Quarterly Shareholder Update discussing the status of the project. It can be viewed in its entirety on the company’s website at

NaiKun Wind Energy Group Inc. is a British Columbia-based renewable energy company with offices in Vancouver, Masset and Skidegate. Located on B.C.’s northwest coast, where the wind resource is one of the strongest and most consistent in the world, NaiKun Wind’s 396MW offshore wind project would generate enough energy to provide electricity to 130,000 B.C. homes. The NaiKun Wind project is at an advanced stage of development with environmental certification from the Provincial Government and agreements in place with key suppliers and First Nations. Given its development status, construction can begin within two years of the award of an electricity purchase agreement. For more information on NaiKun Wind, please visit


Source: naikun, December 20, 2010