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CALGARY, May 26 /CNW/ - Alter NRG Corp. (the "Company", the "Corporation" or "Alter NRG") is pleased to report on its corporate activities and financial results for the three-month period ended March 31, 2008. The following are the highlights for the first quarter of 2008 and the period up to May 22, 2008:
Q1 HIGHLIGHTS (TO MAY 22, 2008)
- Announced a $2 million sale to Kiplasma Industries and Trade Inc.
Alter NRG's plasma torch system will be used in their 144-ton/day
waste facility in Turkey, scheduled for completion in 2009.
(January 2008)
- Received Massachusetts Department of Environmental Protection
approval for a NRG Energy's coal power plant retrofit project in
Somerset, Massachusetts. Alter NRG has an option to invest from 10 to
25% in this project. The project also represents approximately
$40 million in technology sales revenues upon successful development.
(January 2008)
- Entered into a purchase and sale agreement to acquire an equipped
site near Bruderheim, Alberta for $2.5 million. The Bruderheim
Project will feature an integrated gasification combined cycle
facility expected to produce 75 to 80 MW of electricity through
gasification of petroleum coke and oil field waste, both readily
available in the immediate vicinity. (February 2008)
- Announced Coskata's selection of our existing WPC plasma gasification
pilot facility in Madison, Pennsylvania as the site for a cellulosic
ethanol commercial demonstration project. Coskata, which has
partnered with General Motors, will install its proprietary synthesis
gas to ethanol conversion technology and use syngas generated by
WPC's gasifier and using biomass as the feedstock. The pilot plant is
expected to generate approximately $2.5 million in revenues for Alter
NRG in 2009. (April 2008)
- Strengthened our executive team with the addition of Ken Willis as
Vice President of Project Development. Mr. Willis brings over 20
years of senior power industry experience to Alter NRG. (April 2008)
- Closed a bought deal financing of $46 million, including the
over-allotment option, at a price of $4.40 per share. (April 2008)
- Executed engineering services agreements for proposed projects in
Greece (1,600 tons/day), Minnesota (100 tons/day), Florida
(1000 tons/ day), and Kentucky (400 tons/day).
- Initiated the regulatory process, and a strategic partner selection
process for the Fox Creek polygeneration project, which will utilize
our 468 million tonne coal reserves.
- Continued to make gasification design and engineering advancements to
our proprietary gasification systems, resulting in an application for
two additional patents.
For more information on the Company's activities please visit www.alternrg.ca or www.sedar.com to view Alter NRG's 2008 First Quarter Report.
Although debt and equity markets were in a state of flux during the first quarter of 2008, Alter NRG remains well positioned to address the challenges and opportunities that come with turbulent times. Times like these always present challenges and opportunities. Alter NRG was able to close an additional financing just after the end of Q1 which positions the Company with both capital and opportunity. We are excited to have a strong balance sheet to move forward in the opportunity rich plasma gasification market - providing clean energy.
The global push for clean energy and environmental responsibility continues to boost demand for Alter NRG's commercially proven technology, as reflected in some of the exciting "firsts" we achieved in the early months of 2008:
- First partnership with a liquids producer - the commercial
demonstration project being developed by Coskata at our existing
plasma gasification test facility in Madison, Pennsylvania represents
an enormous opportunity for the future. This project increases the
utilization rate at our pilot testing facility and is expected to
bring in revenues of $2.5 million for 2009. However, the real benefit
is the future market potential of being able to produce ethanol from
waste, or biomass using the combination of our plasma gasification
reactor and Coskata's ethanol conversion process. In contrast to
other ethanol technologies that use corn as a feedstock, Coskata's
cellulosic technology, in combination with Alter NRG's plasma
gasification technology, will convert waste and biomass into clean
transportation fuels.
- Approval of the first large scale plasma gasification facility in
North America - The Somerset Station coal retrofit project received
regulatory approval in January 2008. The State of Massachusetts is
well known for being a very stringent regulatory environment and
receiving the regulatory approval is a major milestone for the
project, and for our technology.
- Announced the Bruderheim project - This is expected to be Canada's
first integrated gasification combined cycle project and will also
include CO(2) capture. Ultimately, we'll be creating clean energy,
with much lower air emissions, using waste products from the oil
industry. As the operator, we'll be able to drive the pace of
development. Our goal is to generate cash flow by late 2009 to mid
2010.
- First bought deal financing - in a tumultuous equity market our
syndicate had the confidence in our Company and its potential to
provide us with a bought deal financing for $40 million. We
subsequently closed on $46 million which is illustrative of the
financial strength behind the Company.
These milestones are only part of our successful start to 2008. Behind the scenes, work on strategic partnerships is ongoing, and we have succeeded in attracting the attention of a number of large, reputable companies looking for clean energy solutions. As part of our aggressive approach to commercializing plasma gasification, we continue to foster working relationships with credible project developers, energy companies and waste companies.
We are also continuing to advance our technology in order to retain our leadership position in the emerging gasification industry. Enhancements to our plasma gasification reactor are nearing completion, and we are in the process of applying for two additional patents.
Our technology is increasingly sought after, and every month, more North American regulatory authorities endorse plasma gasification. We are also encouraged by the fact that around the world, more than 100 projects featuring our technology are now in the planning stages. The project-development cycle for large energy facilities is a long-term process, but the demand is already providing exciting opportunities. Our recent $2-million technology sale in Turkey is just one example. Alter NRG also executed four engineering services contracts during the quarter - solid evidence that developers are moving projects forward.
This continues to be an exciting and very busy time for all of us at Alter NRG. I want to thank our employees for the extraordinary effort and dedication they have shown. To help ease the workload, and manage our growth, we recently added team members in sales engineering, accounting, and business development. Ken Willis has also joined us as Vice President of Project Development. Ken brings two decades of senior executive and project development experience in the power industry, and I am delighted to welcome him.
Everyone on our team will continue to work diligently to provide the clean energy the world demands, and the level of success our shareholders deserve.
FINANCIAL RESULTS ($)
March 31, December 31,
2008 2006
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Total Assets $ 79,719,168 $ 78,506,274
Total Liabilities 22,902,072 21,289,213
Total Equity $ 56,817,096 $ 57,217,061
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Three months Three months
ended ended Year ended
March 31, March 31, December 31,
2008 2007 2007
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Revenue, interest and
other income $ 1,063,849 $ 73,465 $ 2,590,870
Loss (1,809,133) (311,382) (11,516,543)
Loss per unit/share -
basic and diluted $ (0.04) $ (0.02) $ (0.35)
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For the complete financial statements please visit www.alternrg.ca or www.sedar.com to view Alter NRG's 2008 First Quarter Report.
Corporate overview
Alter NRG provides and pursues alternative energy solutions through gasification to meet the growing demand for energy in world markets. The Corporation's vision is to become a leader in the development of economically viable and environmentally sustainable gasification projects for the commercial production of energy. Alter NRG creates revenues by selling plasma gasification technology and through equity participation in gasification projects that fit its strategic growth plan.
Alter NRG's mission is to participate in financially accretive projects in the emerging alternative energy market, through technology sales and project interests, to maximize returns for investors. Alter NRG endeavors to be a leader in innovative gasification related technologies applied to produce profitable and clean alternative energy solutions. The Corporation invests in the skills of its people who will provide the creativity, determination and passion to generate growth in stakeholder value. The Corporation continues to strive to be transparent and fair in its activities and work to form positive relationships with the communities in which it operates and with all of its stakeholders. Alter NRG continues to be focused on project development through its two core assets, the Alter NRG/Westinghouse Plasma Corporation ("WPC") plasma gasification technology and our coal reserves. The Corporation has the following announced projects which it has an option to participate or is the operator, as follows:
Somerset, Massachusetts - NRG Energy is converting a 120 MW coal-fired power plant in Somerset into a plasma gasification facility which reduces many harmful emissions such as SOx and Mercury by 95% and NOx by 60%. The project will gasify both coal and biomass which also will reduce the overall CO(2) footprint. The coal power plant retrofit received regulatory approval from the State of Massachusetts on January 25, 2008 and, subject to an existing appeal, plans to proceed with the project in Q3 of 2008. Alter NRG has an option to invest from 10% to 25% in the $200 million project. This would represent approximately $40 million in plasma gasification system technology revenues for the Corporation upon successful construction.
Bruderheim, Alberta - In January 2008, the Corporation executed a $2.5 million purchase and sale agreement for a site in Bruderheim, Alberta. The site has existing infrastructure to host a plasma gasification facility which would convert petroleum coke and oilfield waste from the nearby area into 75 MW to 80 MW of power. This project is currently being operated by Alter NRG and is expected to cost approximately $250 million. The purchase and sale agreement is expected to close in Q2 or Q3 of 2008 at which time the Corporation will complete further detailed engineering and partner selection.
Fox Creek, Alberta - Alter NRG has direct ownership of 468 million tonnes of sub-bituminous coal in the Fox Creek area of Alberta (see reserve report filed at www.sedar.com). This is enough coal to produce 50,000 bbls/d of liquid fuels (diesel fuel and naphtha) for over 40 years through a successful gasification project. The project involves CO(2) sequestration and sale to nearby oilfields for enhanced oil recovery. The Corporation is currently formally engaged in a strategic partner selection process with a major investment baking representative to find suitable project partners and structure to move forward with a large scale coal gasification project. The Corporation expects to complete this process in late 2008.
St Lucie County, Florida - Geoplasma LLC continues to advance the regulatory process for the world's largest waste-to-energy ("WTE") project in St. Lucie, Florida anticipated to be 3,000 tonnes per day of waste which would be converted into 120 MW of power or syngas. This WTE facility, which will use WPC plasma gasification technology and is to be located on an existing landfill site, is finalizing the ground lease with St. Lucie County and an offtake agreement for the syngas or power. Alter NRG has an option to participate up to a 25% equity investment in this project.
The Corporation has a leading plasma gasification technology solution which provides additional benefits including:
- Near term cash flows from technology sales;
- Operational control of the technology for Alter NRG projects;
- Approximately 100 potential projects which are currently
contemplating using the Alter NRG/WPC plasma gasification technology
in more than 30 countries worldwide;
- The opportunity to invest (as a project partner) in additional
projects that plan to use the Alter NRG/WPC plasma gasification
technology; and
- Ability to license the technology and create joint ventures worldwide
with companies that provide financial strength, existing market
knowledge, and project development expertise.
Alter NRG's most significant achievements in the year to date include:
- A $2 million plasma torch system sale to Kiplasma Industries and
Trade Inc. which will be used in their waste facility in Turkey,
scheduled for completion in 2009;
- Receipt of regulatory approval and advancement of NRG Energy, Inc.'s
Somerset, Massachusetts coal powered retrofit project for which Alter
NRG will supply gasification systems and in which Alter NRG has the
option to participate from 10% to 25%;
- Entering into a purchase and sale agreement to acquire an equipped
site near Bruderheim, Alberta for a proposed Integrated Combined
Cycle Gasification project (with carbon capture) that will use
Petroleum Coke and oilfield waste as a feedstock to produce power;
- Selection of the WPC plasma gasification pilot facility for a
cellulosic ethanol commercial demonstration project. The project will
utilize Coskata Inc.'s proprietary synthesis gas-to-ethanol
conversion technology. In the third quarter of 2008, Coskata, in
partnership with General Motors, plans to begin construction of a
40,000-gallon per year commercial demonstration facility. The pilot
plant is expected to generate approximately $2.5 million in revenues
in 2009;
- Closed a bought deal financing for $46 million in gross proceeds,
including the over-allotment option, at a price of $4.40 per share;
- Execution of engineering services agreements for proposed projects in
Greece, Minnesota, Florida and Kentucky; and
- Initiated the regulatory process, and a strategic partner selection
process for the Fox Creek polygeneration project, which will utilize
our 468 million tonne coal reserves.
- Continuing to make gasification design and engineering advancements
to our proprietary gasification systems, resulting in the Company
applying for two additional patents.
The Corporation is also pursuing various site acquisition opportunities in
Canada for Alter NRG operated WTE projects and further strategic partnerships
in various market segments.
Results from plasma system sales and services
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Three month Three month
period ended period ended
March 31, March 31,
2008 2007
-------------------------------------------------------------------------
Sales revenue $ 711,587 $ -
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Selling costs (444,898) -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Gross margin $ 266,689 $ -
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Plasma technology sales and service revenues during the period ended March 31, 2008 are from engineering services provided for reactor design and process engineering, replacement parts for existing gasification customers and plasma gasification testing services at the WPC testing centre pilot facility.
Revenues for the period include $604,331 for engineering services, $96,586 in parts and $10,670 in other revenue. There were no plasma technology sales and services until after the acquisition of WPC in the second quarter of 2007. Going forward, management expects revenues to increase as increased sales, marketing and business development processes move forward and as the plasma gasification market grows. The Corporation has a portfolio of customers that have projects in various stages of development. The project development timeframe extends over several years and the first project to receive regulatory approval was a coal power plant retrofit project in Massachusetts in January 2008. This project is expected to begin construction in late 2008; however, it remains subject to a regulatory appeal process and final NRG Energy board approval. The coal power plant retrofit is expected to be an approximate $40 million sale, with equipment being ordered as soon as late 2008, and revenues earned over a period of about 18 months. During 2008, the Corporation also expects to continue to advance pilot testing, engineering services, and has the potential for licensing income.
Direct costs of sales relate to direct materials and expenditures for products and services and reflect standard rates. Selling costs for the period ended March 31, 2008 are $444,898 and include $366,723 in service revenue selling costs; $40,278 for parts and; $37,897 of other selling costs. Alter NRG did not have any sales in the prior period ended March 31, 2007.
General and administrative expenses
-------------------------------------------------------------------------
Three month Three month
period ended period ended
March 31, March 31,
2008 2007
-------------------------------------------------------------------------
General & administrative expenses ("G&A") $ 1,953,583 $ 332,640
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Consolidated G&A increased by $1,620,943 for the three month period ended March 31, 2008 versus the prior period ended March 31, 2007. The increase in G&A reflects the growth of Alter NRG, which included WPC as of April 17, 2007. The major components of G&A include additions to the Alter NRG management team; salaries and wages from increased staffing as part of Alter NRG's corporate growth strategy; increased rent for the new head office space (lease acquired August 2007) to accommodate growth; management investment in WPC's business operations; and consulting fees related to recruitment and business development activities. At March 31, 2008, the Alter NRG team included 29 full time employees, 18 in the Calgary office and 11 at the WPC facility in the United States. As at May 22, 2008 staffing has increased to 20 full time employees in Calgary and 12 in the United States. The increase in staff is consistent with Alter NRG's corporate growth strategy.
The largest G&A expenses in the three month period ended March 31, 2008 relate to salaries of $900,232; consulting costs of $293,945; office costs of $248,760; professional fees of $159,296 primarily for business development efforts; and accrued bonuses of $86,995. The remaining G&A is for business travel, information technology costs, public reporting and the general costs of setting up and maintaining an office. Professional fees and costs of $64,855 were incurred related to the April 3, 2008 private placement common share financing. These costs were recorded as prepaid expenses until closing of the private placement, at which time these costs were capitalized as share issue costs.
Interest and other income
-------------------------------------------------------------------------
Three month Three month
period ended period ended
March 31, March 31,
2008 2007
-------------------------------------------------------------------------
Interest income $ 277,801 $ 73,465
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Other income 74,461 -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
$ 352,262 $ 73,465
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Interest income relates to funds invested in short-term, interest-bearing investments with a major Canadian chartered bank. Interest income increased by 378% in the three month period ended March 31, 2008 versus the prior three month period ending March 31, 2007 as interest was earned on a significantly higher average cash balance in 2008 from equity issuance net proceeds in the second and fourth quarter of 2007 (refer to the "Liquidity and Capital Resources" section). Other income relates to Jacoby Energy's contribution, equal to general and administrative costs, to the joint venture for the three month period ended March 31, 2008. There were no amounts recorded as other income for the prior period ended March 31, 2007 as the joint venture was not established until August 2, 2007. In May 2008, the Jacoby Energy joint venture license became non-exclusive and under the amended agreement Jacoby Energy is required to contribute a total of $1 million USD of general and administrative costs, which had been fulfilled by March 31, 2008. Alter NRG will retain its interest in any joint venture projects developed to date, including a 25% option in the WTE project in St. Lucie, Florida.
Income taxes
The income tax recovery of $336,149 for the three month period ended March 31, 2008 relates to losses incurred by WPC in the U.S. and the recovery of the future income tax liability from amortization of the WPC acquired intangible assets at a federal and state combined tax rate of 44%. It is estimated that WPC will use the losses within the next year as it has commercial operations and is projected to have taxable income.
The Corporation had a loss from operations in Canada for the three month period ended March 31, 2008 and the three month period March 31, 2007, which resulted in a corresponding future income tax recovery. The Corporation took a full valuation allowance on the future income tax asset and tax recovery, as without commercial operations in Canada at this juncture it cannot be considered more likely than not that the future income tax benefits could be realized.
Loss and cash flow used in operations
-------------------------------------------------------------------------
Three month Three month
period ended period ended
March 31, March 31,
2008 2007
-------------------------------------------------------------------------
Loss $ (1,809,133) $ (311,382)
-------------------------------------------------------------------------
Cash flow used in operations $ (1,196,284) $ (604,563)
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The consolidated loss for the three month period ended March 31, 2008 was higher by approximately $1.5 million compared to the three month period ended March 31, 2007. This increase is due to the increase in G&A expenditures of $1,602,943 (see the "G&A" section), non-cash charges of $422,043 and $444,898 of direct costs of technology sales and services not incurred in the three month period ended March 31, 2007. The loss was offset by sales of $711,587, which Alter NRG did not have in the three month period ended March 31, 2007, an increase in interest income of $204,336 and $74,461 in income for the joint venture. The non-cash amounts consist of amortization of $399,575 and $411,075 in stock based compensation (see "Equity" section), offset by future income tax recoveries of $336,400 for intangible assets from the WPC acquisition. Looking forward, management has expanded the Corporation's product offerings and further developed the sales, marketing and business development processes to increase sales and cash flow from operations for 2008.
Consolidated cash flow used in operations was $1,196,284 for the three month period ended March 31, 2008, which represents the current cash expenditures for direct costs of goods sold and G&A costs offset by sales revenue and interest income.
Capital expenditures
-------------------------------------------------------------------------
Three month Three month
period ended period ended
March 31, March 31,
2008 2007
-------------------------------------------------------------------------
Deferred costs $ 976,213 $ 237,796
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Resource property assessment 367,192 70,137
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Capital assets 625,195 13,208
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Total capital expenditures incurred
in the period $ 1,968,600 $ 321,141
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Capital expenditures related to deferred costs consist of engineering evaluations, development work on plasma gasification systems and potential acquisition costs. Deferred costs related to engineering evaluations and development work will be amortized at the point in time a commercial project is substantially completed. Potential acquisition costs will be amortized upon successful completion of an acquisition; if an acquisition is unsuccessful, the costs will be written off at that time. No deferred acquisition costs have been written off up to this point in time.
The resource property assessment costs relate primarily to the Fox Creek core hole program completed in the first quarter of 2008 incurred to advance the coal resources owned by the Corporation. The Corporation has initiated the regulatory approval process and is progressing with a formal partner selection process in 2008 to further advance the Fox Creek coal-to-liquids project.
For the three month period ended March 31, 2008, capital asset spending consisted of plant and facility costs of $513,040 (March 31, 2007 - $nil) and corporate asset spending of $112,155 (March 31, 2007 - $13,208). Plant and facility costs related to the WPC facility upgrade completed in February 2008 and corporate asset costs, including office and computer equipment which has increased in line with the increase in personnel at WPC and the head office in Calgary (see "G&A" section).
Quarterly information
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2006
----------------------------------------------------
Q2 Q3 Q4 Total(*)
-------------------------------------------------------------------------
Capital expenditures $ 514,822 $ 1,484,248 $ 804,267 $ 2,803,337
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Total revenue - 32,724 50,642 83,366
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Interest income - 32,724 50,642 83,366
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Net loss (384,038) (428,985) (844,868) $(1,657,891)
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Net loss per Unit
basic and diluted $ (0.04) $ (0.03) $ (0.06) $ (0.16)
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(*) Period from inception (March 9, 2006) to June 30, 2006. The Fund had
no significant activity in Q1 2006 from inception on March 9 to
March 31, 2006.
2007
-------------------------------------------------------------------------
Q1 Q2(*) Q3(*) Q4 Total
----------------------------------------------------------------
Capital
expend-
itures $ 321,141 $ 594,085 $ 637,753 $ 1,155,482 $ 2,708,461
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Total
revenues 73,465 583,727 1,156,115 777,563 2,590,870
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Interest
and other
income 73,465 134,907 210,388 627,255 1,046,015
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Loss (311,382) (3,276,859) (3,467,523) (4,460,779) (11,516,543)
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Loss per
Unit/
Share
- basic
and fully
diluted $ (0.02) $ (0.10) $ (0.09) $ (0.11) $ (0.35)
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(*) Q2 and Q3 have been amended for the impact of the reallocation of
goodwill to intangible assets and the related cumulative translation
adjustment and amortization, net of taxes.
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2008
-------------------------------------------------------------------------
Q1
-------------------------------------------------------------------------
Capital expenditures $ 1,968,600
-------------------------------------------------------------------------
Total revenues 711,587
-------------------------------------------------------------------------
Interest and other income 352,262
-------------------------------------------------------------------------
Loss (1,809,133)
-------------------------------------------------------------------------
Loss per Share - basic and fully diluted $ (0.04)
-------------------------------------------------------------------------
The loss for the three month period ended March 31, 2008 relates primarily to G&A expenditures of $1,953,583, amortization of intangible assets acquired through the purchase of WPC of $367,732, stock based compensation of $411,075 and depreciation of $31,843. The loss is offset by sales revenue for the three month period ended March 31, 2008 of $711,587 (less related cost of sales of $444,898), interest income of $277,801, income from the joint venture of $74,461 and an income tax recovery of $336,149. These results are significantly higher than the three month period ended March 31, 2007 due to the acquisition of WPC, and growth consistent with Alter NRG's corporate strategy occurring after the first quarter of 2007. Looking forward, management is implementing sales, marketing and business development processes to increase technology revenues from WPC in the short-term. Over the long-term management plans to generate income from gasification projects, technology sales and has opportunities in both areas, as described in the Corporate Overview.
Credit facility
The Corporation has a line of credit agreement with a major bank in the United States for $700,000 USD. The facility was available until April 30, 2008 at which date the total amount available was reduced to $500,000 USD as per the agreement. The line of credit is due on demand and secured by the assets of WPC. The credit facility bears interest at the lender's rate. No amounts have been drawn on the credit facility as at December 31, 2007. The Corporation has letters of credit outstanding as at May 22, 2008 in the amount of $100,000 USD which reduces the amount that can be drawn on the facility.
Liquidity and capital resources
At March 31, 2008, the Corporation had $27,289,536 in cash and cash equivalents resulting in a decrease in cash of $2,802,947 from December 31, 2007. The decrease is attributed to cash spending on capital, G&A and direct cost of sales, net of revenues received and deferred revenues for future projects. The net working capital surplus of $25,734,937 is primarily attributable to the cash and cash equivalents balances. The working capital balance provides the Corporation with capital to continue to invest in its resource base, provide for general and administrative support for its team, fund engineering studies to provide a strong technical foundation, to evaluate investment opportunities and allow for potential strategic acquisition opportunities.
Subsequent to year end, the Corporation closed an agreement with a syndicate of underwriters for a $46 million financing (see "Subsequent Events" section for details) resulting in available cash and cash equivalents of approximately $70 million at May 22, 2008 that will be used for project development and general working capital purposes. Potential projects include the NRG Energy Somerset Coal retrofit, Bruderheim IGCC development and the St. Lucie WTE project.
Equity
As at March 31, 2008 the Corporation had 45,606,673 shares and 3,991,600 options outstanding and as at May 22, 2008, 56,061,218 shares and 4,030,600 options outstanding (See "Subsequent Events").
Subsequent to year end, the Corporation entered into an agreement with a syndicate of underwriters for a $40 million financing, which included an over-allotment for an additional $6 million exercisable within 30 days after closing (See "Subsequent Events" section for details). On April 3, 2008, the deal was closed, including the over-allotment, for 10,454,545 common shares at $4.40 per common share and gross proceeds of approximately $46 million.
At March 31, 2008 the Corporation had 3,991,600 stock options outstanding, of which 145,000 were granted and 6,000 exercised at a weighted average exercise price of $4.34 and $0.45 per share, respectively, in the three month period ended March 31, 2008.
The authorized share capital of the Corporation consists of an unlimited number of Common Shares.
For the complete management's discussion and analysis please visit www.alternrg.ca or www.sedar.com to view Alter NRG's 2008 First Quarter Report.
The Company intends to grant 697,000 stock options to officers, directors, employees and consultants on June 3, 2008. The pricing will be based upon the lower of the five day weighted average trading price after grant or $2.30. A total of 390,000 options will be granted to officers and directors.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Certain statements in this disclosure may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this disclosure, such statements use such words as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", and other similar terminology. These statements reflect the Corporation's current expectations regarding future events and operating performance and speak only as of the date of this disclosure. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Although the forward-looking statements contained in this disclosure are based upon what Management believes are reasonable assumptions, the Corporation cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this disclosure, and, subject to applicable securities laws, the Corporation assumes no obligation to update or revise them to reflect new events or circumstances. This disclosure may contain forward-looking statements pertaining to the following: capital expenditure programs; supply and demand for the Corporation's services and industry activity levels; commodity prices; income tax considerations; treatments under governmental regulatory regimes.