Nuvolt Corporation Inc.
TSX VENTURE : NCO

Nuvolt Corporation Inc.

March 31, 2010 16:58 ET

Nuvolt Corporation Inc. Announces its Quarterly Financial Results, the First Closing of a Private Placement, as Well as a New Extension of the Schedule

LEVIS, QUEBEC--(Marketwire - March 31, 2010) - Nuvolt Corporation Inc. (« Nuvolt » ) (TSX VENTURE:NCO), announces the filling of its quarterly financial statements, for the quarter ended February 28, 2010.

«The difficult economic situation has continued to cause a reduction in Nuvolt sales.» says Mr. Jacques Dion, President and Chief Executive Officer. «However, a slight economic recovery has been felt since the beginning of the quarter. The U.S. hog industry even seems to once again be making a profit. The price of milk is also up; generating optimism in the industry. Requests for interventions from the U.S. were received at the end of the quarter, the conclusion of systems sales following assessments is picking up, and OEM sales have grown in strength.»

« The marketing of SmartScan has come at the right time, in a context where the management of equipment and costs will be a priority over the next few years.» adds Mr. Dion.

Quarterly highlights :

  • Net earnings have reached $178,000 compared to $429,000 for the same quarter of the previous year, a 59% decrease. Since the start of the financial year, there as been a 50% drop over the previous year.
  • Investments in the development of SmartScan represented $499,000 for the quarter and $672,000 since the start of the financial year.
  • Investments of $40,000 in promotion/ advertising tools and $38,000 for the agricultural fairs with a view to marketing the SmartScan were made.  A commercial version of the product was showcased at the World Ag Expo last February. This presence allowed Nuvolt to enter into product distribution agreements for the dairy farming sector in the United States.
  • A distribution agreement with Navware Canada Inc., a company specialized in the distribution of equipment and product software designed for commercial vessels was signed. This is a 10-year agreement with a sales potential on the order of several million dollars.

The quarterly financial statements and the management report can be view on the System for Electronic Documents Analysis and Retrieval (SEDAR), available at www.sedar.com.

Moreover, Nuvolt announces the first closing of its non-brokered private placement for 1,666,666 units (the ''Units'') at a price of $0.15 per Unit, for proceeds of $250,000 (the ''Placement''). Each Unit is comprised of one common share of Nuvolt and one warrant. Each warrant entitles the holder to acquire one common share of Nuvolt, at a price of $0.20 per share for a period of 36 months following the closing date. The Units are subject to a four-month hold period under applicable securities laws. The proceeds of the Placement will be used for general corporate purposes and to finance the initial phase of the commercial launch of SmartScan.

No commission or finders fees were paid with respect to the Placement.

Finally, Nuvolt announces that it has received the approval of the TSX Venture Exchange to a new extension for the closing of the private placement, until April 30, 2010.

This placement is subject to regulatory approval.

About Nuvolt Corporation Inc.

Nuvolt has developed a specialized expertise in the management of electrical failures, power quality, the detection and neutralization of leakage current, as well as electrical network monitoring systems.

Nuvolt has devoted a great deal of energy to and has made major investments in the development of the SMARTSCAN project. The SMARTSCAN system is a user-friendly product that can be distributed by independent distributors active in specialized sectors including the farming, commercial and industrial sectors.

Certain statements contained in this press release constitute forward-looking information. Such statements are based on the current expectations of management. You are cautioned that such statements can be subject to a multitude of risks and uncertainties that could cause actual results, future circumstances or events to differ materially from those projected in the forward-looking information. The reader should not place undue reliance on the forward-looking information included in this press release given that (i) actual results could differ materially from a conclusion, forecast or projection in the forward-looking information, and (ii) certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information could prove to be inaccurate. These statements speak only as of the date they are made, and Nuvolt assumes no obligation to revise such statements as a result of any event, circumstance or otherwise, except in accordance with law. There is no guarantee that the private placement will be completed as mentioned in this press release or that its terms will not be varied.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Jacques Dion, President and CEO
    418-833-0773
    418-833-4055 (FAX)