RICHMOND, BC, April 29 /CNW/ - VRB Power Systems Inc. ("VRB Power") today
reported its financial results for the December 31, 2008 financial year. The
following is a summary of the key points for the period, updated to April 27,
- Due to the inability of the Company to raise sufficient capital to
support continued operations, VRB Power curtailed its energy storage
operations in November 2008. The Company filed a Notice of Intention
to make a Proposal with the Office of the Superintendent of
Bankruptcy in accordance with the Bankruptcy & Insolvency Act ("BIA")
on November 19, 2009. The Company also obtained an order from the
British Columbia Supreme Court appointing Abakhan & Associates Inc.
as Interim Receiver over the assets and property of the Company
appointed on November 21, 2008. Upon the appointment of the Receiver
all of the Directors of the Company resigned.
- In order to satisfy the Company's liabilities, the Interim Receiver
has disposed of substantially all of the Company's assets, comprising
the energy storage patents and trademarks, plant and equipment and
inventory owned by the Company, for approximately $2.9 million.
- On March 18, 2009, a Proposal under the BIA was lodged by the Interim
Receiver with the Office of the Superintendent of Bankruptcy.
Pursuant to the terms of the Proposal, no later than September 30,
2009, the Interim Receiver, on behalf of the Company, will pay to the
Trustee, for the benefit of creditors, the lesser of the total funds
in the trust account of the Interim Receiver or the funds required to
pay all of the valid proven creditors claims plus simple interest
thereon at 5%. The Proposal was approved at a meeting of creditors on
April 8, 2009 and by the Court on April 27, 2009. At the time of
filing the Proposal, the Interim Receiver estimated the known
creditor claims to be approximately $1.3 million and the maximum
contingent claims to be an additional $800,000;
- The Interim Receiver expects that the Company will continue to
investigate potential transactions or arrangements on its remaining
assets. The Interim Receiver obtained an order from the Court on
April 27, 2009 contemplating a process for soliciting nominees for
directors and for calling, holding and conducting an Annual and
Special General Meeting of Shareholders to be held on June 26, 2009.
Financial Highlights (in CDN$):
- As the Company effectively curtailed its energy storage operations
upon the appointment of the Interim Receiver, it changed its
accounting from a going-concern to a liquidation basis effective
November 20, 2008. The results below reflect operations of the
Company until November 20, 2008 (the "2008 Operating Period"), with
an accrual at December 31, 2008 of all of the estimated costs
relating to the restructuring and liquidation of assets and
satisfaction of liabilities;
- Sales revenue and other income for the 2008 Operating Period was
$515,025 compared to $747,525 for financial year ended December 31,
- Operating expenses were $14,224,626, for the 2008 Operating Period
compared to $15,028,717 for the 2007 year;
- Net loss was $13,709,601 for the 2008 Operating Period ($0.08 per
share) compared to $14,281,192 ($0.10 per share) for the 2007 year.
- An amount of $5,215,225 was recorded as at December 31, 2008 for the
estimated costs related to the restructuring and liquidation of the
Company's assets for the period over which the Interim Receiver is
anticipated to be responsible for the on-going operations of the
Company. This includes the impairment of assets, provisions for
contingent claims and future warranty costs as well as operating
The full consolidated financial statements and MD&A have been filed on
VRB Power would also like to announce advance notice of the Annual and
Special Meeting (the "Meeting") of the shareholders of VRB Power to be held on
June 26, 2009.
Written nominations for directors are hereby invited. Nominations must be
signed by one or more shareholders of VRB Power who have held for at least a
six month period prior to the date of such nomination an aggregate of not less
than one percent of the outstanding shares of VRB Power or shares whose fair
market value is at least $2,000.
Nominations should be delivered to the office of Abakhan & Associates
Inc., the Interim Receiver of VRB Power, at Suite 1120, 625 Howe Street,
Vancouver, British Columbia, V6C 2T6, Attention: Philip McCourt, not later
than May 25, 2009, accompanied by the information regarding the nominee or
nominees as is required to be furnished in the Information Circular to be sent
by VRB Power in connection with the Meeting pursuant to National Instrument
51-102 "Continuous Disclosure Obligations". Upon receipt of valid nominations,
VRB Power will include the name of the nominee or nominees in the form of
proxy and the information as to the nominee in the Information Circular.
Proponents will also be entitled to submit a supporting statement not
exceeding 500 words for each nominee which statement will also be included in
the Information Circular or attached to it.
A person may be disqualified from becoming a director or, after having
been elected or appointed, to continue to act as a director, on the grounds
set forth in Section 105 of the Canada Business Corporations Act. To the
extent the nominees may be considering applying to reactivate trading in VRB
Power's shares on a recognized stock exchange or trading facility, proponents
may also wish to take into account the policies of any applicable stock
exchange or facility regarding the qualifications of directors.
Caution regarding forward-looking statements: VRB Power's press releases
may contain forward-looking statements. These statements are based on
management's current expectations and beliefs which are subject to a number of
known and unknown risks and uncertainties that could cause actual results to
differ materially from those expressed or implied in our forward-looking
statements. The Company does not assume any obligation to update any
forward-looking statements contained in this press release.
Abakhan & Associates Inc.
As Interim Receiver of VRB Power Systems Inc.
For further information:
For further information: