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MONTREAL, Feb. 16 /CNW/ - AAER Inc. (TSX-V: AAE), ("AAER" or the "Corporation"), Canada's only original equipment manufacturer of wind turbines of 1 megawatt ("MW") and more, announced today that the conditional agreement regarding the supply of wind turbines for the Saint-Maxime-du-Mont-Louis project has terminated according to its terms. A number of reasons guided the Corporation in this matter, including the perceived execution risk, the relative lack of return on invested capital, the current state of the financial markets as well as the supply chain challenges brought about by the multiple delays encountered since the original agreement had been signed.
"We are now well into 2010 and, with no final decision nor notice to proceed from our customer, we have decided to focus all of our attention on our core business plan. We will continue to implement our strategy to commercialize our turbines in onshore wind farm projects of up to 50MW of installed capacity in North America" stated AAER President and CEO Dave Gagnon.
The Corporation will continue to service existing customers, as it plans the manufacture and erection of new wind turbines currently under contracts. In the next 5 months the Corporation needs to supply three wind turbines in the state of Massachusetts and will continue to work towards bringing to fruition its promising pipeline of projects throughout North America. The Corporation intends to complete the previously announced equity offering by way of a short-form prospectus filed on December 30, 2009, in compliance with the applicable securities laws.
About AAER Inc.
AAER is a wind turbine manufacturer located in Bromont, Quebec that manufactures and maintains high capacity 1 Megawatt or more wind turbines principally for the North American market. Its strategy is to progressively build its product's components to provide a high level of reliability and competitive pricing to its customers. AAER uses a portfolio of proven European technologies to ensure the performance of its turbines in various wind conditions and terrains. Its stock is listed on the TSX Venture Exchange (TSX-V: AAE). Additional information is available on the Company's website at www.aaer.ca.
This news release contains certain forward-looking statements or forward looking-information. These forward looking statements are subject to a variety of risks and uncertainties beyond the Corporation's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward looking statements. Such risks and uncertainties are disclosed under the heading "Risk Factors" in the Corporation's Annual Information Form for the year ended December 31, 2008 and dated March 26, 2009. Further, forward-looking information is in addition based on various assumptions, including, without limitation, assumptions about: (i) general business and economic conditions; (ii) selection of the Corporation's client bids in different requests for proposals; (iii) the availability of financing on reasonable terms; (iv) the availability of key components for the assembly of wind turbines, (v) the costs of raw materials and parts; (vi) the Corporation's ability to attract and retain skilled staff; (vii) market competition; (viii) the technology offered by the Corporation's competitors; (ix) the Corporation's ability to meet contractual obligations and delivery dates; and * the Corporation's ongoing relations with employees and with clients. Should one or more of these risks and uncertainties materialize, or should the underlying assumption prove incorrect or different, actual results may vary materially from those described in the forward-looking statements. All forward looking statements speak only as of the date of this news release. Accordingly, readers should not place undue reliance on forward-looking statements.
Neither 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 AAER INC.
For further information: For further information: AAER Inc.: Dave Gagnon, President, (450) 534-5155, www.aaer.ca; Eric Phaneuf, Chief Financial Officer, (450) 534-5155, firstname.lastname@example.org