NaiKun Wind Takes Steps to Sustain Offshore Wind Project, Announces Second Quarter Financial Results
May 20 2010 - 5:49PM
Marketwired
NaiKun Wind Energy Group Inc. (TSX VENTURE: NKW) announced today
that its Board of Directors (the "Board") has initiated a process
to retain an advisory firm to assist the Company in undertaking a
review of the strategic alternatives available to ensure maximum
shareholder value.
Since the recent announcement by BC Hydro that NaiKun Wind's 396
MW offshore wind energy project was no longer under consideration
in the Clean Power Call, the Board has been evaluating the
potential for the project and the offshore wind industry in the
context of renewable energy development in British Columbia. While
the timing and specifics of BC Hydro's near term procurement plans
are uncertain in advance of the release of the Integrated Resource
Plan that is required under the new Clean Energy Act, the Company
believes that its project located in the Haida Energy Field off the
east coast of Haida Gwaii can play an important role in BC's future
energy solutions.
The strategic review will encompass a careful assessment of
alternatives including continuing to advance the offshore wind
energy project as the Company's primary project, potential business
combination or joint venture opportunities in the renewable energy
sector, the sale of the Company's interests, among others. It is
anticipated that the review will be completed in a timely manner.
NaiKun Wind advises that no decisions have been made, no formal
proposals received and no agreements reached regarding its assets,
the Company or any subsidiaries. The Company cautions that there
can be no assurance that the review of strategic alternatives will
ultimately result in a transaction.
"We continue to believe that there are significant opportunities
presented by the NaiKun Wind Project," said Philip Hughes, Board
Chair, "and with this in mind, the Board would like to fully
explore all options available to optimize shareholder value."
While the Company is facing a setback with regard to the
offshore wind project, the Company has a number of significant
assets which will be central to the evaluation of strategic
alternatives, in examining how the company can leverage these
assets to sustain the project and ensure maximum shareholder value.
These assets include:
-- A solid financial position, with no debt and $10.2 million of cash and
equivalents (as at March 31st);
-- A project at an advanced stage of development, including extensive
engineering, environmental and site data collection and analysis which
confirms a world class wind resource and the suitability of the site for
the project;
-- A strong team of world class suppliers and partners, including Siemens,
ENMAX and north coast First Nations; and
-- A provincial environmental certification which concluded that the
project will have no significant environmental, social or health effects
on the surrounding area.
The Company will also be undertaking further restructuring to
dramatically reduce its cost structure to ensure that existing
financial resources can support the development of the offshore
wind energy project into 2014 and beyond. In addition, and as part
of this restructuring, effective April 1, 2010, the Board's fees
were reduced by 50%.
"Projects of our scale and advanced degree of development are
expected to be necessary to meet the Province's energy goals, and
in line with this, we are committed to taking steps to ensure that
the project can be sustained over the long term," said Paul Taylor,
NaiKun Wind President and CEO.
While the strategic review is underway, NaiKun Wind will
continue to work on the development of the wind project by
completing the federal environmental assessment process which the
Company expects to accomplish during the summer. NaiKun Wind will
also continue to support the Haida as they finalize their
deliberations regarding the opportunity to participate as an equity
partner in the generation project.
NaiKun Wind also announced today its financial results for the
latest quarter. During the quarter ended March 31, 2010, NaiKun
Wind incurred a net loss of $1.42 million ($0.04 net loss per
share), compared to a net loss of $3.29 million ($0.08 net loss per
share) for the quarter ended March 31, 2009. The reported loss has
decreased from the same period last year due to reduced development
expenditures given that activities related to securing
environmental approvals are largely complete. As at March 31, 2010,
NaiKun Wind had $10.2 million in cash and cash equivalents,
compared to $11.5 million at the end of December, 2009.
NaiKun Wind has prepared an assessment of the Clean Power Call
process and the Clean Energy Act which is available on the
Company's website at www.naikun.ca.
NaiKun Wind Energy Group Inc. is a British Columbia-based
renewable energy company with offices in Vancouver, Masset and
Skidegate. Once contracted, NaiKun Wind's 396MW offshore wind
energy project would generate enough energy to provide electricity
to 130,000 B.C. homes and play a significant role in combating
climate change. The project would bring high value jobs to the
region during the construction and operating phases. NaiKun Wind is
committed to working in partnership with First Nations and
collaboratively with stakeholder groups and local communities in
the development of its project. 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.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
Contacts: NaiKun Wind Energy Group Inc. Susan Bruckner Media
Enquiries 604-631-4475 sbruckner@naikun.ca NaiKun Wind Energy Group
Inc. Peter Murray Investor Enquiries 604-631-4494 pmurray@naikun.ca
www.naikun.ca
Oceanic Wind Energy (TSXV:NKW)
Historical Stock Chart
From May 2024 to Jun 2024
Oceanic Wind Energy (TSXV:NKW)
Historical Stock Chart
From Jun 2023 to Jun 2024