For Immediate Release
January 14, 2016
Vancouver, B.C. – January 14, 2016 – NaiKun Wind Energy Group Inc. (TSX-Venture: NKW) (the “Company”or “NaiKun Wind”) today announced the following Corporate Updates:
NaiKun advises the Company’s Board has approved a retroactive reduction in compensation to its members. Effective October 1, 2015, the directors will forego the cash portion of their compensation and retain only the share portion of compensation levels established in April 2010. Additionally, effective January 1, 2016, the Board has approved a modified compensation arrangement for the Company’s CEO in which the CEO will defer 55% of cash compensation until such time as the Company achieves a success event, at which time the deferred amount will be paid at twice the deferred amount. Additionally the CEO will forego the portion of his compensation that was previously paid as shares in lieu of cash.
NaiKun has also been working towards the cancellation of the Company’s Amended & Restated 2011 Warrant Plan. As of the Company’s September 30, 2015 yearend there were 8,606,890 warrants outstanding. To date 7,874,290 (91%) have been surrendered for cancellation.
NaiKun advises it is issuing shares to the Company’s directors and CEO. Effective April 1, 2010, compensation to members of the Board was reduced by 50%. As part of the reduced Board compensation it was also decided that 25% of that reduced compensation would be paid in the form of common shares in lieu of cash. As approved on January 13, 2016, directors have foregone the cash portion of their compensation and retained only the share portion. Accordingly, the Company is issuing 174,481 shares to its directors for the quarter ended December 31, 2015. Additionally, the Company is issuing 208,333 common shares to the Company’s CEO, for the quarter ending December 31, 2015, as the share portion of his compensation. All shares were issued at the closing share price for December 31, 2015 of $0.06.
Furthermore, the Company announces the resignation of Jack Scott as VP Commercial of the Company and as President of one of its subsidiary companies. Mr. Scott has provided the Company with excellent leadership and expertise and we would like to thank Mr. Scott for his years of dedication and hard work.
NaiKun advises that in accordance with the TSX Venture Exchange Policy 2.5, the Company has not met the requirements for a Tier 1 listed company. Therefore, effective January 14, 2016, the Company’s Tier classification will change from Tier 1 to Tier 2.
NaiKun Wind Energy Group Inc. is a British Columbia-based renewable energy company. Located on B.C.’s northwest coast, where the wind resource is one of the strongest and most consistent in the world, NaiKun Wind’s 396MW offshore wind project would generate enough energy to provide electricity to 200,000 B.C. homes. If the project does proceed it is expected to result in an estimated 500 jobs during construction, 50 permanent jobs for maintenance and operations and over $400 million in direct expenditures in the province during construction, of which $250 million will benefit North Coast communities.
Caution Regarding Forward-Looking Statements – This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf.
The NaiKun Wind project is at an advanced stage of development with environmental approvals from the Provincial and Federal Governments and agreements in place with key suppliers and First Nations. Given its development status, construction can begin within two years if an electricity purchase agreement can be secured. For more information on NaiKun Wind, please visit www.naikun.ca.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information please contact:
Michael O’Connor, President & CEO
NaiKun Wind Energy Group Inc.
Tel: 604-639-8460 • Fax: 604-685-4215