TORONTO, Oct. 24, 2013 /CNW/ - ONEnergy Inc. ("ONEnergy"
or the "Corporation") (TSXV: OEG and OEG.A) today reported its
unaudited operating and financial results for the three and twelve
months ended August 31,
2013.
As previously reported, on July 9, 2013 the Corporation completed a
change-of-business transaction (the "Transaction") by acquiring
Sunwave Gas & Power Inc. ("Sunwave") for $1 million in consideration through the issuance
of multiple and subordinate voting shares and a concurrent private
placement of $9 million. The
financial and operating highlights reflect Sunwave's approximately
eight weeks of operations.
Financial highlights included the
following:
- Cash and short-term investments, as at August 31, 2013, totaled $22.96 million, which represents an increase of
$4.81 million from August 31, 2012;
- Gross revenue for the quarter ended August 31, 2013 was $0.11
million, with gross margin of $0.04
million;
- Operating expenses increased $0.23
million or 16.3% to $1.65
million for the quarter ended August
31, 2013 (quarter ended August 31,
2012 - $1.42 million),
including selling costs of $0.22
million;
- The net loss for the three months ended August 31, 2013 was $1.56
million, or a basic loss per share of $0.01, reflecting ongoing litigation-related
costs, one-time expenses related to the Transaction, as well as the
funding of growth activities of Sunwave.
Operating highlights included the
following:
During the fourth quarter of 2013, Sunwave
aggressively ramped activity, increasing the size of its direct
sales force by 50%, securing new distributor agreements,
establishing new regional offices in eastern Ontario and Connecticut, and initiating the process to
become a licensed supplier of electricity in Connecticut. Sunwave also began
preparations for regulatory licensing and business launch in two
other US states.
"In our first reporting quarter since the change
of business transaction closed in July of this year, ONEnergy has
made substantial progress" said Mark
Lewis, chief executive officer of ONEnergy. "We have
rapidly accelerated our Ontario
sales activities and customer acquisitions while setting the
initial foundations for growth in the US market."
During the fourth quarter of 2013, the
Corporation made an application to the Ontario Securities
Commission (the "OSC") to change ONEnergy's reporting year-end to
December 31. ONEnergy's
principal operating subsidiary, Sunwave, has historically operated
on a fiscal year ending December 31,
and management believes it is in the best interest of shareholders
to continue to report consolidated results consistent with a
December 31 year-end. The OSC
approved the requested change in ONEnergy's fiscal year-end, which
will result in audited financial results for fiscal 2013 covering a
period representing 16 months to December
31, 2013.
The new board of directors and management team
of ONEnergy continue to vigorously pursue claims against certain of
the Corporation's former directors and officers in connection with
the payment of approximately $15.7
million of "corporate restructuring awards", paid to the
directors and officers from the net proceeds of approximately
$64.0 million realized by the
Corporation on the sale of its spectrum license in 2009. None of
the allegations in the claim have been proven before the Court.
As previously reported, in July 2013 the Corporation granted 17,537,410
options to purchase subordinate voting shares in the capital of the
Corporation to officers, employees and service providers of the
Corporation (including 10,556,504 options that were granted to
Mark J. Lewis, the Corporation's
chief executive officer upon closing of the acquisition of Sunwave,
as previously disclosed in the Corporation's information circular
dated June 7, 2013). The
options vest over a four- or five-year period, are exercisable at a
price of $0.14 per share, and expire
in July 2023.
For further information on ONEnergy's financial
results, please review the Corporation's unaudited condensed
consolidated interim financial statements and management's
discussion and analysis of financial condition and results of
operations for the three and twelve months ended August 31, 2013 and 2012.
About ONEnergy Inc.
ONEnergy, through Sunwave, is a licensed
retailer of energy commodity products to the residential and
commercial customer market segments in Ontario. Sunwave was granted its natural
gas marketer license and electricity retailer license from the
Ontario Energy Board in June
2012. ONEnergy's business can be divided into three
customer segments: residential, small commercial and large
commercial.
ONEnergy shares are listed on the TSX Venture
Exchange under the symbols "OEG" for multiple voting shares and
"OEG.A" for subordinate voting shares. ONEnergy's website may be
found at www.onenergyinc.com.
The corporate information contained in this
release includes forward-looking statements regarding future events
and the future performance of ONEnergy that involve risks and
uncertainties that could cause actual results to differ materially.
Assumptions used in the preparation of such information, although
considered reasonable by ONEnergy at the time of preparation, may
prove to be incorrect. The actual results achieved may vary from
the information provided herein and the variations may be material.
Consequently, there is no representation by ONEnergy that actual
results achieved will be the same, in whole or in part, as those
forecast.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE ONEnergy Inc.