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blutip Power Announces First Quarter Results
(Canada Newswire Via Acquire Media NewsEdge)
MISSISSAUGA, ON, June 27, 2011 /CNW/ - blutip Power Technologies Ltd. (TSXV: BPR) today announced its financial results for the Three-Month period ended
March 31, 2011.
Highlights for the three-month periods ended March 31, 2011:
The following outlines the key events in the development of the Company
and the commercialization of the Company's technology and capabilities
during the three months ended March 31, 2011 and up to the date of this
MD&A:
Three Months ended
March 31
(unaudited)
2011
2010
$
$
EXPENSES
General and administration
371,075
436,068
Sales and marketing
71,933
202,754
Research and development
368,393
446,602
Warranty costs
-
(21,764)
Stock-based compensation
31,953
2,886
Amortization - property and equipment
16,961
28,055
Amortization - development costs
-
242,559
Amortization - intellectual property
43,010
40,598
Total Expenses
903,325
1,377,758
Loss from operation
(903,325)
(1,377,758)
Interest and other income
11,134
(2,378)
Total comprehensive loss for the period
(892,191)
(1,380,136)
Loss per share
(0.01)
(0.02)
In December 2010, the Company announced the launch of blutip Power
Technologies ("blutip Power"), a new division to allow for product
expansion into much broader markets. Subsequently, the Company
officially launched blutip Power, a comprehensive platform for customer
solutions to improve emissions and save fuel costs across many engine
applications. In conjunction with this launch and the rebranding of
the Company to blutip Power, the Company launched a new website in
February 2011 - www.blutipower.com . The Company continues working on diesel combustion and using its
knowledge and expertise to expand into multi-fuel controls, smart
telematics and a control and monitoring solution. blutip Power offers
customers access to engine combustion emissions analysis, environmental
packaging, lab services and tailored program prototyping. Shareholders
approved changing the company name to blutip Power Technologies Ltd. at
its Annual General and Special Meeting of Shareholders on May 12, 2011.
On April 19, 2011, the Company announced that it retained an investment
bank (the "IB"), to assist with a "best efforts" private placement
financing (the "Offering") for up to 10,000,000 units ("Units") at a
price of CDN $0.15 per unit for gross proceeds of up to CDN $1.5
million. The Company proposes to issue Units comprised of one common
share and one-half of one common purchase warrant. Each whole warrant
(a "Warrant") will be exercisable at the offering price of $0.20 for a
period of 24 months from the closing date of the Offering.
The Offering remains subject to, among other things, completion of
satisfactory due diligence, as well as, receipt of all necessary
approvals, including that of the TSX Venture Exchange.
If the Offering proceeds, and dependent on the amount of capital raised,
the Company expects that net proceeds from the Offering may be used to
(i) accelerate the commercialization of the Company's patented product,
the blutip Power3, for the power generation market, (ii) further the developments of its
software for existing control and telematic products for use in new
combustion engine systems and applications, such as different types of
diesel engine manufacturers, and (iii) general working capital
purposes.
blutip Power has agreed to pay the IB a cash commission equal to 7% of
the gross proceeds of the Offering and issue broker warrants equal to
7% of the aggregate number of units issued in connection with the
successful completion of the Offering. The broker warrants will be
exercisable to purchase one common share of blutip Power at a price
equal to $0.155 at any time and from time to time prior to the day that
is 24 months from the closing date of the offering and will be subject
to all regulatory hold periods and approvals.
On February 24, 2011, the Company launched its next generation of
product, the blutip Power3. The Company completed a blutip Power3 Impact Study on stationary generator sets at the Caterpillar dealership
facility of Toromont Industries Ltd., in Concord, Ontario. The study
resulted in savings of over 10% of fuel usage on the Caterpillar XQ400
genset. As a result, the Company announced the immediate availability
of the blutip Power3product for 400 kW class CAT Power Generators. It also announced that it
is developing a product for generators with up to 1.5 MW capacities.
The blutip Power3 Impact Study incorporated the use of the blutip AUC2 integrated with the
HGS. The study results showed average fuel savings of 6 to 12%
depending upon load variables. For a full copy of the report, please
see: www.blutipower.com/products/blutip-telematics-systems/ .
On January 26, 2011, the Company completed its agreement with I.C.E.
Fuel Technologies Ltd. ("ICE") to acquire certain intellectual property
assets ("IP Assets"). As per the final agreement the Company issued
1,586,000 common shares and common share purchase warrants and made
final payment of $292,881. The acquisition of the IP Assets and
termination of the agreement allows the Company to internalize the
intellectual property development and pave the way for global expansion
into multiple diesel emissions and fuel economy applications and
markets through rapid addition of engine platforms.
On January 18, 2011, the Company entered into a Memorandum of
Understanding with WorldKlass Technologies ('WorldKlass MOU" and
"WorldKlass") to jointly deploy solutions for power generation
equipment where high fuel consuming and emitting power generators can
be made cleaner and more cost effective utilizing blutip Power
solutions. WorldKlass has developed a complementary Infrared Fuel
Ceramics technology and has concentrated on the power generation market
with several large clients. The intent of the WorldKlass MOU is to
deploy the respective technologies as a single source to achieve
maximum efficiency in fuel consumption and emissions reduction.
On January 11, 2011, the Company announced that it signed a Distributor
Agreement with GreenCell Technologies Inc. ("GreenCell") (GT5: GR).
GreenCell has a marketing system and several energy saving products
that it will market in conjunction with the blutip Power products.
GreenCell will concentrate on marketing, sales and service to the
transport industry and the Company will focus on product development
and cost efficiency. A third party assembler, to be sourced, will
produce the product.
In May 2010 the Company installed eighteen HGS units on a fleet of
trucks on a rental arrangement. The rent was to be traded for
advertising on the fleet's trailers. The fleet agreed to provide access
to the units for research and development of improved HGS software. The
contra arrangement expired in May 2011.
Total cash and short-term investments used in operating activities was
$1,322,284 for the three months ended March 31, 2011 (2010 -
$1,282,530). During the first quarter blutip Power continued decreasing
its spending on sales and marketing of its HGS product.
Net loss for the three months ended March 31, 2011 was $892,191 (net
losses of $0.01 per share) (Net losses in 2010 were $1,380,136 (net
losses of $0.02 per share)).
The Company reports cash and short-term investments of $907,528 as at
March 31, 2011, compared to $2,256,271 as at December 31, 2010; a
decrease of $1,348,743 in the quarter.
On March 31, 2011, the Company announced that its distributor agent,
Greencell Technologies Inc., ("Greencell") placed an order for the
blutip HGS product totalling $263,000 CDN. As previously announced,
blutip Power and Greencell entered into a Distribution Agreement that
would allow both companies to expand their positioning in the energy
solutions market to the transport industry.
On April 14, 2011, the Company announced that its mining partner, Mining
Technologies International Inc. ("MTI") agreed to purchase the
exclusive manufacturing and global distribution licensing rights for
blutip Power's Hydrogen Enhanced Diesel Combustion technology. MTI will
use the technology with direct-driven rolling equipment applications in
the surface mining, underground mining, tunneling, construction mining
and off-highway market sectors. blutip Power also licensed MTI to
manufacture and supply the blutip HGS and associated sub-assemblies to
the world off-road heavy equipment market. In consideration, MTI will
pay $2,000,000 to blutip Power, in four quarterly installments with the
previous deposit of $200,000 applied to the first payment.
MTI will also have the "first right-of-refusal" on all potential
heavy-equipment customer inquiries as defined within the agreement. In
the event MTI is not interested in pursuing the opportunity, blutip
Power will have the ability to execute through its other channels of
distribution.
Not included in the license is blutip Power's proprietary controller
software, which will be supplied directly to MTI by blutip Power, for
each application of the HGS product. blutip Power retains all rights
and ownership over all of its intellectual property, manufacturing
schematics and product specifications of the blutip HGS in its
entirety.
Under separate agreement, MTI will also act as a distributor for the
blutip Power3 Savings Share Program, on a non-exclusive basis, for the diesel
power-generation market. All future development work between the two
companies is on an individual basis with separate terms and conditions.
On May 12, 2011, at the Annual General Meeting, the Company highlighted
its new Revenue Share Program ("RSP") being introduced to customers of
the Power3 Program. The RSP provides for the installation of the Power3 in exchange for sharing of fuel cost reductions by the customer. More
details of the RSP are set out below.
On May 17, 2011 the Company announced it had retained Athlone Limited, a
financial group that specializes in debt facilities. Athlone Limited
will operate as blutip Power Financial Corporation ("BTFC") in an
arms-length relationship from blutip Power and will provide financing
services to distributors, sales agents and end users of blutip's Power3 Program. BTFC will collect the savings generated for the customer
through the RSP, with a percentage of the savings paid directly to
blutip Power and the Distributor, and a percentage retained for the
services provided by BTFC.
BTFC will also act as the Master Distributor for the Power3 Program market in the North American and Caribbean markets. BTFC has
acquired seven (7) Master Distributors to market and distribute the
Power3 product to date.
On May 18, 2011 the Company released its latest Combustion Controls
testing on Caterpillar 3500 series power generators for the 850kW to
2.5MW. The Combution Control testing achieved positive fuel
optimization of up to 7% on the CAT XQ1250 and up to 5% on the XQ2000.
The results further broadened the Company's expansion of the Power3
Program product offering.
On May 12, 2011, the shareholders approved motions (see the Annual
Information Circular).
to change the name of the Company to blutip Power Technologies
Inc.("blutip Power"),
to approve the Incentive Stock Option Plan, and
to approve a new Performance Share Unit Plan.
About blutip Power
blutip Power is a technology company headquartered in Mississauga,
Ontario, Canada. The Company has invested in the research and
development of hydrogen and control technology resulting in a
proprietary, patented and patent-pending hydrogen generating system
("HGS®") and advancement in multi-fuel universal combustion controls.
blutip's Hy-Drive HGS enriches the fuel-air charge of an internal
combustion engine with hydrogen produced through electrolysis and uses
its proprietary software controls to improve combustion of the fuel-air
mixture. The result is improved fuel economy and reduced opacity
(particulates).
Cautionary Note Regarding Forward-Looking Statements:
This press release contains certain forward-looking statements that are
based upon current expectations, which involve risks and uncertainties
associated with the Company's business, and the economic environment in
which the business operates. Forward-looking statements contained in
this MD&A that are not statements of historical fact may be deemed to
be forward-looking statements including but not limited to, statements
about future development of blutip Power's products, commercial
production in 2011, future working capital requirements, and validation
of blutip Power's products, and can be identified by the use of
forward-looking terminology such as "plans", "expects", or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", or "does not anticipate",
"thinks", or "believes" or variations of such words and phrases or
statements that certain actions, events or results "may", "could",
"would", "might", or "will be taken", "occur", or "be achieved" and
similar expressions to the extent that they relate to the Company or
its management. These forward-looking statements are not historical
facts, but reflect the Company's current expectations regarding future
results or events. These forward-looking statements are subject to a
number of risks and uncertainties that could cause actual results or
events to differ materially from current expectations, including the
matters discussed in the section "Risks and Uncertainties" below.
Many of these assumptions are based on factors and events that are not
within the control of blutip Power and there is no assurance they will
prove to be correct. Factors that could cause actual results or events
to vary materially from results or events anticipated by such
forward-looking information include future working capital
requirements, the ability to develop products on an economic basis,
product validation, factors relating to the marketing, development and
commercialization of blutip Power existing and prospective product
lines, regulatory approvals and requirements, changes in foreign
exchange and interest rates, government regulation, environmental
risks, capital expenditures, intellectual property, operating or
technical difficulties, risks associated with the emissions and fuel
combustion industries such as economic factors (including fuel costs),
failure of processes to operate as anticipated, dependence on key
personnel, employee relations and availability of equipment and skilled
personnel, actual results of current research and development
activities, development timelines, risks associated with the emissions
and fuel combustion industries, changes in project parameters as plans
continue to be refined as well as those risk factors discussed below,
which risks may cause actual results to differ materially from any
forward-looking information.
Although blutip Power has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not place
undue reliance on forward-looking information. blutip Power does not
undertake to update any forward-looking information that is
incorporated by reference herein, except in accordance with applicable
securities laws.
The TSX Venture Exchange has in no way passed upon the merits of the
proposed transaction and has neither approved nor disapproved the
contents of this press release. The TSX Venture Exchange does not
accept responsibility for the adequacy or accuracy of this release.
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