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BURNABY, BC, Aug. 13 /CNW/ - Legend Power Systems Inc. (TSX.V: LPS)
("Legend Power" or "the Company") (formerly Texas Gas & Oil Inc. before the
reverse takeover of July 2, 2008), a leading provider of energy conservation
technology, today announced financial results for Texas Gas & Oil Inc. for the
third quarter ended June 30, 2008 and provided an update on the Company's
As the reverse take over of Texas Gas & Oil Inc. did not complete until
after the quarter end of June 30, 2008, the financial results are presented on
a pre-RTO basis for Texas Gas & Oil Inc.
Units of Legend Power Systems Inc. started trading on the TSX-Venture
Exchange at the opening on July 3, 2008 under the symbol LPS. The common
shares of Texas Oil & Gas Inc. have since been delisted.
Legend Power manufactures, sells and installs a patented energy
conservation device consisting of an Electrical Harmonizer and an Automatic
Voltage Regulator (AVR) (together, the "Electrical Harmonizer-AVR") that has
been proven to help reduce electricity consumption by seven to ten percent
through voltage optimization. Commercial and retail customers that can benefit
from this technology include "big box" retailers, department stores,
warehouses, office buildings/complexes, hotels, theme parks, military bases,
casinos and other high electrical consumption facilities.
"This last quarter was a monumental period for Legend Power," said Gerry
Gill, Chairman and CEO of Legend Power. "In addition to completing our reverse
take over of Texas Gas & Oil and listing on the TSX-Venture Exchange, we have
established a solid foundation for strong sales growth through our
relationships with provincial utilities and flexible financing options that
are now available to customers through a newly established relationship with
Royal Bank of Canada (RBC). We are looking forward to a very vibrant period
for Legend Power."
- Texas Gas & Oil Inc. reported a net loss of approximately $63,177
($0.02 per share) for the third quarter ended June 30, 2008, compared
to a loss of $5,975 ($0.00 per share) for the same period last year.
Full financial statements can be viewed on SEDAR.
- Consolidated pro-forma financial statements as of June 30, 2008 for
Texas Gas & Oil Inc. and Legend Power Systems Inc. show assets of
$3,553,298, liabilities of $1,348,868 and shareholders' equity of
$2,204,430. Legend Power has working capital of approximately
- Legend Power obtained a $605,000 order from Canada Post for eight
Electrical Harmonizer-AVR installations at three of their Ontario
facilities on March 3, 2008. Under the terms of its sales contract,
Legend Power does not recognize revenue until an installation is
complete. Six of the Canada Post Electrical Harmonizer-AVRs have been
installed with the remaining two units scheduled for installation by
the fourth quarter of fiscal 2008 ending September 31, 2008.
- Legend Power anticipates total revenues will reach approximately
$670,000 for fiscal 2008.
- To date, Legend Power has completed 22 Electrical Harmonizer
installations in British Columbia and two in California. B.C.
installations include Canada Post in Vancouver and Victoria, BC
Hydro's facilities on Dunsmuir in Vancouver, Edmonds in Burnaby and
their Nanaimo facility, IKEA in Richmond, shopping malls such as Il
Mercato and Sunshine Hills, schools and other facilities. These
installations have saved over $1 million in power consumption and
eliminated over 10,000 tones of greenhouse gas emissions.
- In February 2008, Legend Power's Electrical Harmonizer-AVR was
approved for incentive funding under the BC Hydro Power Smart
Partners' Program in British Columbia. Under this program, BC Hydro
will pay up to 60 per cent of the cost of the technology which
dramatically improves the payback incentive for companies. The
Electrical Harmonizer-AVR also qualifies for incentive funding in
Ontario of up to 40 per cent under the Building Owners and Manager's
Association's (BOMA) Conservation and Demand Management (CDM)
- Legend Power's plan over the next 12 months is to focus on B.C. and
Ontario markets because of their urgent need to meet specific
conservation targets and the incentive funding that they are
providing. The company intends to open an Ontario sales office in
first half of calendar 2009, with plans to expand into the U.S.
market in late 2009/early 2010.
- Under the Public Sector Energy Conservation Agreement, BC Hydro and
the B.C. Government are conducting energy audits of 6,500 government
buildings in the province including an assessment of voltage levels.
The inclusion of voltage level testing in the energy audit would
allow Legend Power to quickly pre-qualify and target high potential
government buildings that need to implement energy management
solutions. The Company has submitted a proposal to the B.C.
government to conduct a voltage optimization assessment of B.C.
schools and hospitals to identify those facilities that would most
benefit from Legend Power's Electrical Harmonizer-AVR technology. The
Company is awaiting formal response from the provincial government to
- Legend Power has secured a $2.0 million conditional operating line of
credit from the Royal Bank of Canada (RBC), as well as a $300,000
revolving lease line of credit that will allow the Company to lease
capital assets. In addition, RBC's leasing department has agreed to
provide qualified Legend Power customers with capital leases for up
to 100 per cent of the cost of an Electrical Harmonizer-AVR net of
rebates and grants for lease terms ranging from 24 to 60 months.
Financing can include equipment and extended warranty. In conjunction
with available incentive funding, this financing program will enable
most Legend Power customers to offset their lease payments through
energy savings making the transaction cash neutral.
- Legend Power has been awarded $252,915 in funding contributions over
a two-year period under the National Research Council's Industrial
Research Assistance Program (IRAP) towards the Company's R&D program.
This is a matching funding program that will enable Legend Power to
stay at the forefront of energy conservation technological
- The Company's R&D efforts continue to be focused on the further
refinement of the existing AVRs and on developing new products that
reduce power consumption and improve power quality. The Company's
latest product innovation, the AVR1000, will allow the company to
target higher consumption commercial facilities than the existing
AVR500. The Electrical Harmonizer-AVR's are offered in the following
Electrical Harmonizer: AVR:
400 amp AVR500
500 amp AVR500
750 amp AVR1000
1500 amp (future development)
- Legend Power will be attending the ENEX 2008, Energy Excellence
conference in Ontario September 23-24, 2008. The Company's Chairman
and CEO, Gerry Gill, will participate in a Technological Breakthrough
panel discussion on September 24th hosted by Energy Management
About Legend Power Systems Inc.
Legend Power Systems Inc. is a leading electrical energy conservation
company that manufactures and markets a patented device to help commercial and
industrial customers achieve significant energy savings through voltage
optimization. Legend Power's Electrical Harmonizer-AVR eliminates
inefficiencies by delivering the optimal level of voltage a user needs. Most
customers receive higher voltage levels than required at certain points of the
grid from electrical utilities. Higher than nominal voltage can affect the
lifespan of electrical equipment and result in high monthly utility bills. By
delivering the optimal voltage to the user, Legend Power's Electrical
Harmonizer-AVR helps companies reduce their electricity bills, maintenance
costs and greenhouse gas emissions while increasing the life of electrical
equipment. The technology also decreases capital and operating costs for
Forward Looking Information
This release and referenced materials contain forward looking statements,
within the meaning of the "safe-harbour" provisions of the Private Securities
Act of 1995, which are subject to a number of known and unknown risks,
uncertainties and other factors that may cause actual results to differ
materially from those anticipated in our forward looking statements. Factors
that could cause actual results to differ materially include: rapid
technological and/or market changes in the industry including actual
electrical billing rates; the adequate protection of the Company's proprietary
rights; and other factors described in the Company's regulatory filings.
Although we believe the expectations reflected in our forward looking
statements are reasonable, individual results may vary, and we cannot
guarantee future results, levels of activity, performance or achievements.
For further information:
For further information: Ginny Morgan, Corporate Development Manager,
Legend Power Systems Inc., firstname.lastname@example.org; Media: Ross
Sullivan/Stephanie Thatcher, Peak Communicators, (604) 689-5559; Investor
Relations: Martin Livingston, Living Communications Inc., (604) 689-5559;
LEGEND POWER SYSTEMS INC., 8618 Commerce Court, Burnaby, BC, V5A 4N6, (604)