Vancouver, B.C. – August 26, 2010 – NaiKun Wind Energy Group Inc. (TSX Venture: NKW) today announced its financial results for the quarter ended June 30, 2010, and provided an update on the status of its strategic review and other activities.
NaiKun Wind initiated a strategic review process following BC Hydro’s decision to remove the Company’s 396MW offshore wind project in northwest British Columbia from consideration for a contract award in the Clean Power Call. The Company retained Cormark Securities in late June to conduct the review and recommend strategies for maximizing value for shareholders.
On August 23, Cormark presented their report to NaiKun Wind’s Board of Directors. The Board also received a report from Energy and Environmental Economics, Inc. (E3), a consulting group whose opinion on west coast electricity markets is amongst the most highly respected in the industry. These reports contained an assessment of regional electricity markets, opinions on the potential for NaiKun’s project to succeed in this environment, an analysis of the North American renewable energy sector and the potential for NaiKun Wind to become involved in other projects.
After considering the reports, the Board concluded that the interests of NaiKun Wind’s shareholders are best served by continuing to move forward with the offshore wind energy project. In addition, the Board directed NaiKun Wind’s management team to pursue an additional strategic partner or investor that would augment the strengths afforded by existing relationships with ENMAX Corporation and the Haida Nation.
“Our team believes strongly in the goal of building British Columbia’s first offshore wind farm and we are pleased at receiving direction from the Board to continue pursuing this objective,” said Michael O’Connor, NaiKun Wind’s President and CEO. “Our strategy for the post-Clean Power Call environment will reflect the advanced stage of the project’s development and the important benefits it can bring to the people of British Columbia,” he added.
In June, NaiKun Wind announced a number of executive changes as part of a corporate restructuring designed to significantly reduce expenditures so that existing financial resources can sustain operations into 2014. The Company has since undertaken additional staffing and other changes to further lower expenses. By fiscal year-end (September 30, 2010), NaiKun Wind expects its annual operating budget going forward to be below $1.7 million.
In July, the Company was pleased to learn that the Rule Family Trust had become its largest shareholder, having acquired 4 million shares (10.15 per cent of the Company’s outstanding common shares).
NaiKun Wind also announced today its financial results for the latest quarter. For the quarter ended June 30, 2010, NaiKun Wind incurred a net loss of $1.97 million ($0.05 net loss per share), compared to a net loss of $2.68 million ($0.07 net loss per share) for the quarter ended June 30, 2009. As at June 30, 2010, NaiKun Wind had $8.41 million in cash and cash equivalents, compared to $10.21 million at the end of March 2010.
NaiKun Wind Energy Group Inc. is a British Columbia-based renewable energy company with offices in Vancouver, Masset and Skidegate. 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 130,000 B.C. homes. The NaiKun Wind project is at an advanced stage of development with environmental certification from the Provincial Government and agreements in place with key suppliers and First Nations. Given its development status, construction can begin within two years of the award of an electricity purchase agreement. For more information on NaiKun Wind, please visit www.naikun.ca.
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Director, North Coast Relations
NaiKun Wind Energy Group
Phone: 604-631-4482 or firstname.lastname@example.org
Manager, Investor Relations
NaiKun Wind Energy Group Inc.
Phone: 604-631-4494 or email@example.com