Nesscap Energy Inc.
TSX VENTURE : NCE

Nesscap Energy Inc.

December 01, 2011 08:30 ET

Nesscap Energy Inc. Reports Third Quarter 2011 Financial Results

SEOUL, SOUTH KOREA--(Marketwire - Dec. 1, 2011) - Nesscap Energy Inc. ("Nesscap") (TSX VENTURE:NCE), a global leader in research, development and manufacturing of ultracapacitor products, reported its financial results for the three and nine month period ended September 30, 2011.

Net sales for the three month period increased by 23% to $4.6 million (KRW 5.3 billion), compared to $3.8 million (KRW 4.3 billion) for the same period in 2010. Net loss for the quarter was $1.1 million (KRW 1.2 billion) or $0.008 per ordinary share compared to a net income of $146,320 (KRW 166 million) or $0.00 per ordinary share for the same period in 2010. The net loss was attributed to sales and marketing expenses and also foreign exchange loss.

For the nine months ended September 30, 2011, the Company reported a sales increase of 29% to $13.0 million (KRW 14.7 billion) and a net loss of $3.6 million (KRW 4.1 billion) or $0.03 per ordinary share. This compares to sales of $10.1 million (KRW 11.4 billion) and a net loss of $970,830 (KRW 1.1 billion) or $0.01 per ordinary share for the same nine-month period last year. Working capital at September 30, 2011 was $1.6 million (KRW 1.8 billion), including $607,880 (KRW 691 million) in cash.

"Nesscap has a unique product and opportunity to establish themselves as a major player in the Ultacapacitor market and I am honoured to join and lead the Company to the next level of growth." said Dennis Orwig, Chief Executive Officer of Nesscap Energy Inc. "Our recently announced financing will provide Nesscap with the expanded production capacity to assist with back orders and to fill orders that we previously needed to turn away. In addition to our growth in production, we are implementing a strategic focus on expanding our global sales and service personnel positioned in existing and new targeted markets.

On September 26th, 2011, Nesscap welcomed Mr. Dennis Orwig to the Company as Chief Executive Officer. Mr. Orwig has extensive experience in power and technology development in the US, UK, Europe, the Middle East, Africa and Asia markets. Dr. Sunwook Kim stepped down as Chief Executive Officer and continues to serve as a Director, Non-Executive Chairman and remains active in the Company's research and development projects.

Subsequent to the quarter end, Nesscap announced an investment agreement with RUSNANO and Vardimco Enterprises, an affiliate of I2BF Global Ventures which respectively subscribed for 50,955,000 and 2,681,842 Nesscap common shares, at a price of CAD $0.38 per share, for aggregate gross proceeds of US $20,000,000 (based on a USD-CAD exchange rate of 1.0191). Proceeds from this financing will be used for the establishment of a new full scale production facility for ultracapacitors and research centre in the Russian Federation (US $15,000,000) and for the expansion of Nesscap's current manufacturing and core R&D operations in Korea (US $5,000,000).

For more information about Nesscap Energy's listing and the Qualifying Transaction, please see the prospectus dated December 29, 2010 as well as its Annual Information Form, copies of which are available on SEDAR at www.sedar.com.

The unaudited condensed consolidated interim financial information and related MD&A can also 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. 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.

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.

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

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