NaiKun
Wind Energy Group Inc. (TSX VENTURE:NKW) (the "Company' or "NaiKun Wind") today announced its financial
results for the three months ended March 31, 2011, a fiscal period
during which the Company maintained the expenditure level achieved
through its restructuring and continued to progress the new strategies
it began during the last quarter of fiscal 2010. The Company also
announced on March 17, 2011 that the NaiKun
wind energy project has been granted a federal screening decision,
confirming that Canada's first offshore wind project can be constructed
with no significant environmental, social and health effects.
NaiKun Wind is confident that the Company's
current strategic efforts towards the procurement on an electricity
supply contract, represents the best available opportunity to support
the advancement of the project and maximize shareholder value.
For the three months ended March 31, 2011, NaiKun
Wind incurred a net loss of $0.7 million ($0.02 per share), compared to
$1.4 million ($0.04 per share) for the three months ended March 31,
2010. As at March 31, 2011 NaiKun Wind had
$7.6 million in cash and cash equivalents, compared to $10.2 million at
the end of March 31, 2010. These numbers are consistent with the
Company's planned reorganization and restructuring.
For fiscal 2011, the Company expects cash operating expenditures to be
approximately $1.8 million. On this basis, the Company has sufficient
financial resources to sustain operations into 2014 and beyond.
Effective April 1, 2010, as stated in the Company's news release of May
20, 2010, compensation to members of the Board was reduced by 50%. As
part of the newly lowered Board compensation it was also decided that
going forward 25% of that compensation would be paid in the form of
common shares in lieu of cash. Accordingly, the Company issued 52,991
shares to its directors for the quarter ended March 31, 2011.
Additionally, the Company issued 54,348 common shares to the Company's CEO,
for the quarter ended March 31, 2011, as the share portion of his
compensation.
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
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 of the award of an
electricity purchase agreement. For more information on NaiKun Wind, please visit www.naikun.ca.
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.
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.
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