Solarvest BioEnergy Inc.

Solarvest BioEnergy Inc.

November 12, 2008 21:10 ET

Solarvest BioEnergy Inc. Announces Fiscal 2008 Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 12, 2008) - SOLARVEST BIOENERGY INC. (TSX VENTURE:SVS) ("Solarvest" or the "Company") today announced financial results for the year ended July 31, 2008.

During the 2008 fiscal year, the Company was a Capital Pool Company and identified a Qualifying Transaction, which it has closed subsequent to the fiscal year end. The following are selected highlights during the 2008 fiscal year and the subsequent closing of the Qualifying Transaction.


- Qualifying Transaction

-- Entered into contractual agreements (the "Qualifying Transaction") involving the acquisition of the worldwide exclusive rights, subject to limited exceptions, to the Hydrogen Technology, which is a controlled method for turning on and off genes in algae chloroplast that are responsible for photosynthesis resulting in the continuous production of hydrogen gas.

- Financings

-- Completed a prospectus offering in February 2008 for gross proceeds of $1,000,000.

-- Completed a private placement in August 2008 for gross proceeds of $100,000.

- Other

-- Appointed Dr. Richard Wagner, Mr. Mark Long and Mr. Philip Ranck to the Board of Directors.

-- Subsequent to the year-end, completed the Qualifying Transaction and expanded operations.

For fiscal 2008, the Company recorded a net loss of $214,254, which represents an increase of $160,511 when compared to fiscal 2007. The increase in the net loss is primarily attributed to research and development costs of $102,849, which were $Nil in fiscal 2007. These costs have been charged to operations and are related to the business that the Company has acquired pursuant to the completion of its Qualifying Transaction.

Also contributing to the increase, are consulting related expenses which were $13,691 for fiscal 2008 compared to $1,963 for fiscal 2008, and management fees and salaries which were $26,880 compared to $Nil in fiscal 2007 as the Company has expanded its operations upon completion of its Qualifying Transaction.

The Company has acquired equipment of $62,950 (2007 - $Nil) which will be used in its operations. Deferred Acquisition costs of $245,483 (2007 - $Nil), which includes a $25,000 non-refundable deposit and $63,500 in sponsorship fees were paid and accrued in connection with the completion of the Qualifying Transaction. These costs became part of the total costs associated with the Qualifying Transaction upon final regulatory approval, which was received subsequent to the fiscal year end, on September 18, 2008.


In February 2008, the Company completed and filed a prospectus offering of 2,500,000 common shares for gross proceeds of $1,000,000 at a price of $0.40 per share.

After the funding of operating losses and the payment of financing and deferred acquisition costs, a balance of $934,149 remains in cash at July 31, 2008.

In August 2008, the Company closed a non-brokered private placement of 250,000 common shares at a price of $0.40 per share for gross proceeds of $100,000.

The Company incurred a net loss of $214,254 (2007 - $53,473) during the current year which consists of some of the following items:

Consulting fees of $13,691 (2007 - $1,963) have increased because the Company used the services of consultants who assisted the Company with its Qualifying Transaction.

Management fees and salaries of $26,880 (2007 - $Nil), paid or accrued to a director and a private company controlled by a director have increased because the Company entered into management agreements that came into effect in anticipation of and upon completion of the Qualifying Transaction.

Professional fees of $43,796 (2007 - $36,588) consist of auditing, accounting and legal fees. These have increased primarily due to the work required to complete the prospectus filing and costs related to maintaining the Company's public company status.

Research and development costs of $102,849 (2007 - $Nil) have increased because these are new costs that relate to the operations of the Company as a result of the Qualifying Transaction.

The Company earned $4,205 (2007 - $4,267) in interest income from funds held in the bank.


The Company has financed its operations to date through the issuance of common shares. The Company continues to seek capital through various means including the issuance of equity and/or debt. The financial statements have been prepared on a going concern basis which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The continuing operations of the Company are dependent upon its ability to continue to raise adequate financing and to commence profitable operations in the future.

At July 31, 2008 and 2007, the cash and cash equivalents totalled $934,149 and $419,033 respectively. The increase in cash and cash equivalents is the result of several rounds of private placements. During the current year, financing activities provided net cash of $846,777 from the exercise of agent's options and completion of the prospectus offering. Gross proceeds from the issuance of capital stock were $1,006,027 and share issue cash costs paid were $159,250. Financing activities during the previous comparative period used net cash of $7,307, consisting of $1,200 from the exercise of agent's options and $8,509 paid as share issuance costs.

On August 29, 2008, the Company closed a non-brokered private placement of 250,000 common shares at a price of $0.40 per share for gross proceeds of $100,000. The private placement was entirely subscribed by a director of the Company and was a precondition to the Company closing its Qualifying Transaction.

The Company's consolidated fiscal 2008 and 2007 financial statements are summarized below:


Amortization $ 1,500 $ -
Consulting 13,691 1,963
Management fees and salaries 26,880 -
Office and miscellaneous 2,315 1,124
Professional fees 43,796 36,588
Registration and filing fees 5,542 11,143
Research and development 102,849 -
Shareholder costs 4,866 -
Transfer agent 5,713 6,113
Travel 6,307 809
Website 5,000 -
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Loss before other item (218,459) (57,740)
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Other Item
Interest income 4,205 4,267
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Loss and comprehensive loss for the year (214,254) (53,473)

Deficit, beginning of year (76,137) (22,664)
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Deficit, end of year $ (290,391) $ (76,137)

Basic and diluted loss per common share $ (0.04) $ (0.04)

Weighted average number of common shares
outstanding $ 5,171,750 1,505,836


Loss for the year $ (214,254) $ (53,473)
Items not affecting cash:
Amortization 1,500 -

Changes in non-cash working capital items
Increase in receivables (8,306) (462)
Increase in accounts payable and accrued
liabilities 63,673 83
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Net cash used in operating activities (157,387) (53,852)
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Acquisition of equipment (45,482) -
Deferred acquisition costs (128,792) -
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Net cash used in investing activities (174,274) -
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Proceeds from the issuance of capital stock 1,006,027 1,200
Share issuance costs (159,250) (10,756)
Refund of share issue costs - 2,249
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Net cash provided by (used in) financing
activities 846,777 (7,307)
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Change in cash during the year 515,116 (61,159)

Cash, beginning of year 419,033 480,192
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Cash, end of year $ 934,149 $ 419,033


Current assets:
Cash $ 934,149 $ 419,033
Receivables 10,257 1,951
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944,406 420,984

Equipment 61,450 -
Deferred acquisition costs 245,483 -
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$ 1,251,339 $ 420,984

Current Liabilities:
Accounts payable and accrued liabilities $ 222,193 $ 24,361
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Shareholders' equity
Capital stock 1,281,163 461,974
Contributed surplus 38,374 10,786
Deficit (290,391) (76,137)
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1,029,146 396,623
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$ 1,251,339 $ 420,984

The Company's complete 2008 Consolidated Financial Statements and Management's Discussion and Analysis are being filed today with Canadian securities regulatory authorities and will be available through SEDAR at

About Solarvest BioEnergy Inc.

Solarvest is a research & development company in the biotechnology sector. The Company's principal business is the research and development of alternative energy. The Company is committed to the development of sustainable and renewable energy sources to meet the growing energy demands and environmental challenges. Solarvest has acquired the rights to a biologically-based hydrogen producing technology, which provides a controlled method for turning on and off genes in algae resulting in the continuous production of hydrogen gas.

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

The TSX Venture Exchange has neither approved nor disapproved the contents of this Press Release.

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