Nesscap Energy Inc.
TSX VENTURE : NCE

Nesscap Energy Inc.

May 28, 2015 16:00 ET

Nesscap Energy Inc. Reports First Quarter 2015 Results for Ultracapacitor Products

SEOUL, SOUTH KOREA--(Marketwired - May 28, 2015) - Nesscap Energy Inc. ("Nesscap") (TSX VENTURE:NCE), a global leader in research, development and manufacturing of ultracapacitor products, reported its financial results for the first quarter ended March 31, 2015.

Revenue for the three-month period was US $3.4 million, compared to $5.3 million in the same period last year. The decrease in revenue is primarily due to lower demand in the renewable energy and heavy transportation sectors as compared to the previous year.

Net loss for the quarter was $1.1 million or $0.005 per share compared to a net loss of $0.1 million or $0.001 per share in the same period in fiscal 2014. The increase in net loss was mainly due to a decrease in gross profit margin, driven by lower factory utilization, and the impact of foreign currency translation losses.

At March 31, 2015, the Company had cash and cash equivalents equal to $1.7 million and working capital of $6.0 million.

"Overall demand in the first quarter softened, relative to last year, particularly in the Asian renewable energy segment," said Jim Zuidema, Acting Chief Executive Officer of Nesscap. "We do expect demand to recover and strengthen over the course of the year and we remain fully committed to our strategy of bringing new products to market, expanding our production capacity, and strengthening our financial position."

In April 2015 the Company settled accrued interest of USD 98,000 owed to I2BF by issuing 2,040,443 common shares to I2BF at a deemed price of CAD 0.06 per share.

On March 27, 2015, Arbat Capital agreed to provide bridge financing to the Company in an amount of up to USD 1.5 million. An initial tranche of USD 750 thousand was provided on March 31, 2015 and a second tranche will be made available at the option of the Company. On April 9, 2015, the Company issued 3,129,250 bonus common shares to Arbat Capital which is equivalent to 20% of the initial tranche of USD 750 thousand at a deemed price of CAD 0.06 per share.

Nesscap continues to focus on developing its largest regional markets in Europe and China while strengthening its overall position as a technology leader in the ultracapacitor industry. The strategic focus for the Company includes transportation, renewable energy, industrial applications and consumer electronics. Nesscap plans to increase investments in technology, direct and indirect sales channels, market development, and production capacity.

The Company is hosting its annual general meeting of shareholders on Tuesday, June 23, 2015, at 10:00 a.m. (Toronto time) at the offices of Norton Rose Fulbright Canada LLP located at Suite 3800, Royal Bank Plaza, South Tower, 200 Bay Street, Toronto, ON M5J 2Z4.

The financial statements for the first quarter of fiscal 2015 and related MD&A can be found on SEDAR at www.sedar.com.

About Nesscap

Since its inception in 1999, Nesscap Energy Inc. has become an award winning global leader in technology innovation and product development of ultracapacitors. Demand for ultracapacitor products has increased rapidly and become significantly more diverse as new applications have been developed and commercialized. The Company believes strongly that these trends will continue over the next several years and that the transportation segment has the greatest long term potential for rate of growth and overall size. Promising areas within the transportation segment include heavy-duty hybrid buses, trucks, trains, and trams as well as automotive applications such as "start-stop", battery assistance, and power stabilization. Other growing market segments include renewable energy applications, such as windmills, telecommunication power back-ups, and "smart grid" power stabilization systems. 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.

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) has in any way approved or disapproved of the contents of this press release.

Forward-Looking Statements

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.

Contact Information

  • Nesscap Energy Inc.
    Jim Zuidema
    Chief Executive Officer (Acting) and Chief Financial Officer
    845-652-0833
    jzuidema@nesscap.com