SEOUL, SOUTH KOREA--(Marketwire -08/24/12)- Nesscap Energy Inc. ("Nesscap") (NCE.V), a global leader in research, development and manufacturing of ultracapacitor products, today reported its financial results for the three-month and six-month periods ended June 30, 2012.
Sales for the three-month period decreased 40% to $2.8 million (USD), compared to $4.7 million for the same period in 2011. Sales for the six-month period decreased 33% to $5.7 million from $8.6 million in 2011. The decrease is primarily due to a significant drop in sales to one of the Company's largest 2011 customers, overall soft demand at key accounts, and the continued weakness of the European and Chinese economies. Net loss for the quarter was $769,177 or $0.004 per ordinary share compared to a net gain of $42 thousand or $0.000 per ordinary share for the same period in 2011. The reduction in net gain was due mainly to a reduction in revenues and increase in sales, general and administration expenses. The Company had cash and cash equivalents equal to $1.0 million and working capital of $13.2 million at the end of the quarter.
"In the second quarter, Nesscap experienced softness with a few of our customers, specifically in the Euro zone." said Dennis Orwig, Chief Executive Officer of Nesscap Energy Inc. "We are, however, aggressively pursuing new business and remain committed to executing our strategic and operational initiatives, supported by continuing signs of long-term global growth in ultracapacitor products and applications."
In May 2012, the Company established German-based Nesscap Energy GmbH, a wholly-owned subsidiary of Nesscap Energy Inc. to expand business in Europe.
As a result of the completion of an equity financing previously announced in January 2012, 18,304,341 preferred shares, issued to Vardimco Enterprises Limited (since renamed I2BF Energy Ltd., "I2BF"), were converted into common shares in May 2012. The Company completed its external equity financing of $20 million from Open Joint Stock Company Rusnano, in Russia, and I2BF, an affiliate of I2BF Holdings Ltd., in the British Virgin Islands.
Subsequent to the quarter end, the Company announced the closing of a USD $8.5 million private placement of common shares from I2BF and Arbat Capital Group Ltd. ("Arbat Capital") at a price of CAD 0.38 per common share. Proceeds will be allocated primarily to expand Nesscap's operations in South Korea.
The unaudited financial statements and related MD&A can be found on SEDAR at www.sedar.com.
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. Uniquely structured, Nesscap products are used to replace or enhance the performance of energy and power needs for modern applications ranging from portable electronic devices to high-tech 'green' cars and are available in both cells and modules. 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 www.nesscap.com.
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.
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