blutip Power Announces Third Quarter Results

blutip Power Technologies Ltd. (TSXV: BPR)

MISSISSAUGA, ON, Nov. 29, 2011 /CNW/ - blutip Power Technologies Ltd. today announced its financial results for the Three and Nine-Months period ended September 30, 2011.

Highlights for the three and nine-month period ended September 30, 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 and nine-months ended September 30, 2011 and up to the date of this MD&A:

                                     
            Three Months ended       Nine Months ended
            September 30       September 30
            (unaudited)       (unaudited)
            2011       2010       2011       2010
            $       $       $       $
Net revenue            17,990       -       327,905       -
Cost of sales            16,529       -       297,585       -
Gross profit            1,461       -       30,320       -
                                     
EXPENSES                                     
General and administratio           291,132       400,529       1,128,950       1,442,394
Sales and marketing            111,639       205,537       256,863       637,837
Research and development            430,361       476,563       1,261,935       1,127,434
litigation Settlement            150,000       -       150,000       -
Bad debts expense            -       -       262,500       -
Inventory write-up            -       -       (256,362)       -
Warranty costs            -       -       -       (21,764)
Stock-based compensation            30,649       32,982       191,929       37,665
Amortization - property and equipment            15,125       20,354       48,265       75,961
Amortization - development costs            -       240,069       -       722,214
Amortization - intellectual property            42,727       42,653       115,140       124,664
Total Expenses            1,071,633       1,418,687       3,159,220       4,146,405
(Loss) from operation            (1,070,172)       (1,418,687)       (3,128,900)       (4,146,405)
  Interest and other incom           (16,846)       19,106       (2,990)       33,079
Total comprehensive (loss) for the period            (1,087,018)       (1,399,581)       (3,131,890)       (4,113,326)
Loss per share            (0.01)       (0.02)       (0.04)       (0.06)

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 September 30, 2011 and up to the date of this MD&A:

  • On November 24, 2011 the Company announced Robert Bucher, President & CEO has left the Company to pursue other interests. The Board subsequently appointed Dean Dussias, blutip's Chief Operating Officer and Chief Financial Officer, as Interim-CEO while it commences a CEO search.

  • On November 21, 2011, the Company announced it had become aware of an Ontario lawsuit commenced by Blutip Financial Corporation ("BTFC") seeking damages against the Company in an unliquidated amount. Management believes the lawsuit is the latest attempt by BTFC's founder to pressure the Company into accepting a continuing role for him, and to divert attention away from BTFC's failure to meet the requirements for a potential partnering arrangement discussed earlier this year. Management believes the allegations in the lawsuit are entirely without merit and the Company will vigorously contest the allegations if the matter proceeds.

  • On October 31, 2011, the Company announced that it completed a private placement ("Offering") of Senior Secured Convertible Notes (the "Notes") with CCM Master Qualified Fund, Ltd. ("CCM" or the "Lender") for gross proceeds of $2,600,000 with the Lender reserving the right to advance a further $1 million within 60 days following closing. The net proceeds were to be used for working capital, prepayment of interest, and retirement of previous secured and unsecured notes.  For complete details, please refer to the press release issued on October 31, 2011, as well as the accompanying MD&A to this release filed on Sedar at www.sedar.com.

  • On October 3, 2011, the Company announced its selection for participation in the Canadian Innovation Commercialization Program ("CICP") through Public Works and Government Services Canada ("PWGSC"). Created to bolster innovation in Canada's business sector, the CICP helps bridge the pre-commercialization gap for innovative goods and services.

  • On October 3, 2011, the Company completed incremental funding in the form of a Promissory Note (the "Note") for a total principal amount of $76,000 in anticipation of the private placement offering outlined above. The Note matured on October 21, 2011 and paid interest of 13%, calculated on an annual basis. The Note was subsequently repaid from the gross proceeds of the Private Placement outlined above and no Note Warrants were issued.

  • On July 18, 2011, the Company announced changes to the Board of Directors with the appointment of Mr. Dean Dussias to the board. Mr. Dussias is the owner of Arete General Management, LLC (AGM), a Chicago based consulting firm specializing in growth and turnaround situations for companies that require general management, financial and leadership skills that provide long-term value creation to clients. Subsequently, Mr. Dussias was appointed Chief Operating Officer and Chief Financial Officer on October 22, 2011.

    Mr. Travis Bradford and Mr. Dan Doucette resigned as Directors, Messrs. Doucette and Bradford continue in a consultative capacity as the Company enters into its next phase of commercialization and growth. Mr. Peter Williams was named Interim Chairman of the Board.

  • On July 14, 2011, the Company announced that it had begun to actively market its blutip Controls and Power3 technology through its newly established external industrial sales network of Master Distributors and that this network and restructured marketing plan had begun to payoff. It announced that it entered into letters of intent with two major end users in the aggregate and trucking services industries.

    The Company notes that the initial agreements to deploy blutip controls and Power3 technology products do not commit blutip Power's customers to full deployment. Subsequently, blutip Power is no longer in pursuit of a commercial relationship with the aggregate industry user and continues discussions with the potential trucking services user.

  • On July 5, 2011, the Company announced that it completed an un-brokered private placement ("Offering") of Senior Secured Convertible Notes (the "Notes") for a total principal amount of $1,000,000, net proceeds to be used for working capital. The Notes mature on October 31, 2013, pay interest of 6% per annum and are secured by a General Security Agreement on all the assets of the Company. The Note was subsequently repaid from the gross proceeds of the Private Placement outlined above and no Units were issued.

About blutip Power:
blutip Power is a technology company with its headquarters in Mississauga, Ontario, Canada. The Company has invested in the research and development of control and hydrogen technology resulting in a proprietary, patented and patent-pending blutip Power Combined Combustion Technology (CCT) and Hydrogen Control Technology (HCT), on-demand hydrogen generating system ("HGS®"), and technologies contained therein and related thereto. blutip Power's proprietary blutip CCT maximizes engine combustion efficiency to reduce fuel consumption. The blutip CCT AND HCT, in application with other technologies designed to reduce combustion emissions, will improve their overall effectiveness. The HGS enriches the fuel-air charge of an internal combustion engine with hydrogen produced through electrolysis to improve combustion of the fuel-air mixture. The result is reduced fuel consumption and reduced opacity (particulates).

Cautionary Note Regarding Forward-Looking Statements:
This press release may contain 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. For broader clarity on forward-looking statements please refer to the accompanying financial statements and MD&A for the period ending September 30, 2011. 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.

 

SOURCE blutip Power Technologies Ltd.

For further information:

Dean H. Dussias
Interim CEO,
COO & CFO
Tel:  (905) 542-3024 x222
Email: ddussias@blutipower.com

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blutip Power Technologies Ltd.

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