NaiKun Reports Net Loss of USD 0.6 Million in Third Quarter Financial Results (Canada)
NaiKun Wind Energy Group Inc. (the “Company” or “NaiKun Wind”) announced its financial results for the three months ended June 30, 2011, a fiscal period during which the Company maintained the expenditure level achieved through its restructuring and continued to progress the new strategies it began during the last quarter of fiscal 2010.
NaiKun Wind is confident that the Company’s current strategic efforts towards the procurement on an electricity supply contract, represents the best available opportunity to support the advancement of the project and maximize shareholder value.
For the three months ended June 30, 2011, NaiKun Wind incurred a net loss of $0.6 million ($0.02 per share), compared to $1.9 million ($0.05 per share) for the three months ended June 30, 2010. As at June 30, 2011 NaiKun Wind had $7.1 million in cash and cash equivalents, compared to $8.4 million at the end of June 30, 2010. These numbers are consistent with the Company’s planned reorganization and restructuring.
For fiscal 2011, the Company expects cash operating expenditures to be approximately $1.8 million. On this basis, the Company has sufficient financial resources to sustain operations into 2014 and beyond.
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 Board compensation it was also decided that going forward 25% of that compensation would be paid in the form of common shares in lieu of cash. Accordingly, the Company issued 90,281 shares to its directors for the quarter ended June 30, 2011. Additionally, the Company issued 92,593 common shares to the Company’s CEO, for the quarter ended June 30, 2011, as the share portion of his compensation.
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 approvals from the Provincial and Federal Governments 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 www.naikun.ca.
Caution Regarding Forward-Looking Statements – This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Source: naikun, August 30, 2011