Enssolutions announces 2008 year-end results

    TORONTO, May 1 /CNW/ - Enssolutions Group Inc. (TSXV:ENV) ("Enssolutions"
or the "Company"), a manufacturer and distributor of environmentally
responsible emulsion products for a wide variety of industrial and commercial
market demands, announced yesterday its financial results for the year ended
December 31, 2008.

    Operating Highlights for 2008

      -   On October 30, 2008 the Company completed its qualifying
          transaction (under the policies of the TSX Venture Exchange, the
          "Qualifying Transaction") with a private Ontario company,
          Enssolutions Ltd. Shortly thereafter, the Company's name was
          changed to Enssolutions Group Inc. from Chrysalis Capital V

      -   In January 2008 demand shareholder loans totalling US$1,000,000
          were exchanged for 7% three year, convertible debentures which
          together with accrued interest were converted into 3,624,449 shares
          of the Company on the closing of the Qualifying Transaction at

      -   Between February and May 2008 the Company issued $1 million of
          three year 12% convertible debentures which together with accrued
          interest were converted into 2,877,258 shares of the Company on the
          closing of the Qualifying Transaction at $0.37/share.

      -   In addition, on the closing of the Qualifying Transaction,
          outstanding 7% convertible debentures having an aggregate principal
          amount of $892,170 plus accrued interest were converted into
          3,177,288 shares of the company at $0.37/share.

      -   Concurrently with the closing of the Qualifying Transaction, the
          Company also raised $915,000 via a private placement of 15%
          convertible debentures having an aggregate principal amount of
          $915,000, together with 2,472,972 common share purchase warrants.

      -   In addition to the manufacture and sale of its existing emulsion
          products, the Company began blending and selling process dust
          control products and processes (patent pending) marketed as PD1 and
          PD2. These products are used to control process dust generated at
          material crushing and transfer points in mining and aggregate

      -   The Company obtained Ontario Provincial Standards (OPSS 305 and
          2510) approval for the use of its Entac(TM) product on provincial
          highways. This approval will allow the Company to market its
          granular stabilization applications at both the provincial and
          municipal levels in 2009.

      -   The Company reached agreement with Oneh'ta, a Mohawk business
          enterprise, whereby Oneh'ta agreed to assist the Company in
          securing various distributors to act as value-added-resellers in
          defined territories, primarily in aboriginal communities in
          northern Canada.

    Financial Results

    Certain of the Company's financial results for the fiscal year ended
December 31, 2008, as compared to its financial results for the fiscal year
ended December 31, 2007, are presented below:

                                              Year ended          Year ended
                                       December 31, 2008   December 31, 2007
                                                       $                   $
    Revenues                                   3,343,047           2,869,015
    Net (loss)                                (2,514,253)         (2,006,514)
    Basic and Diluted Loss per Share               (0.12)              (0.11)
    Assets                                     3,317,326           2,744,655
    Long Term Liabilities                        879,562           1,088,225

    The audited financial statements of the Company for the fiscal year ended
December 31, 2008 as well as Management's Discussion and Analysis with respect
thereto are available at www.sedar.com.
    The Company embarked upon its fiscal 2008 business plan in a relatively
stable global economy that deteriorated significantly during the second half
of the year with the collapse of the financial markets. As a result, the
Company's activity was constrained by a capital shortage both before and after
the Qualifying Transaction. The Company's budgeted capital requirements for
2008 were $2,000,000 but with the capital markets collapse the Company was
only successful in raising $915,000. The impact of this shortage in 2008 was
to postpone modifications to production facilities intended to lower the cost
of production and curtail the implementation of the Company's sales and
marketing plan. Also, lack of adequate working capital restricted the
Company's ability to timely acquire sufficient raw materials to make enough
product to meet customer demand, resulting in lost sales. Faced with an
on-going capital shortage management implemented cost cutting measures
including staff cuts and salary reductions.
    Management believes that if the Company can raise sufficient capital to
execute its business plan it can increase sales and become profitable. David
Howe, President & CEO, commenting on Enssolutions' results and future
prospects said: "We are perusing financing initiatives on a number of fronts
but the outcome of our efforts is unknown at this time." Added Mr. Howe,
"Despite the financing challenges facing the Company in 2008, we increased our
US sales by 89% over 2007. Comparable Ontario sales which were down by 39%
largely because of record rain falls are expected to return to 2007 levels in
2009". In addition, Mr. Howe commented that "Management believes that recently
announced government stimulus programs particularly related to road
construction will generate additional business opportunities and that recent
price recoveries for metals could lead to production increases by our mining
customers generating improved PD and Top(TM)/Entac(TM) sales for the Company".

    About Enssolutions

    Enssolutions manufactures, distributes and applies environmentally
responsible products to meet a wide variety of industrial and commercial
market demands. Enssolutions provides engineered environmental solutions for
mine tailings control, process dust and erosion control, granular
stabilization, road construction/maintenance and stockpile sealing. It has
production facilities in Hamilton, Ontario and Phoenix, Arizona that service
some of North America's largest mining, steel, cement, and road
construction/maintenance companies as well as numerous public road
    For more information on Enssolutions, please visit www.enssolutions.com.

    Certain information in this news release constitutes forward-looking
statements. When used in this news release, the words "may", "would", "could",
"will", "intend", "plan", "anticipate", "believe", "seek", "propose",
"estimate", "expect", and similar expressions, as they relate to the Company,
are intended to identify forward-looking statements. In particular, this news
release contains forward-looking statements with respect to, among other
things, business objectives, expected growth, results of operations,
performance, business projects and opportunities and financial results. These
statements involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from those
anticipated in such forward-looking statements. Such statements reflect the
Company's current views with respect to future events based on certain
material factors and assumptions and are subject to certain risks and
uncertainties, including without limitation, changes in market, competition,
governmental or regulatory developments, general economic conditions and other
factors set out in the Company's public disclosure documents. Many factors
could cause the Company's actual results, performance or achievements to vary
from those described in this news release, including without limitation those
listed above. These factors should not be construed as exhaustive. Should one
or more of these risks or uncertainties materialize, or should assumptions
underlying forward-looking statements prove incorrect, actual results may vary
materially from those described in this news release and such forward-looking
statements included in, or incorporated by reference in this news release,
should not be unduly relied upon. Such statements speak only as of the date of
this news release. The Company does not intend, and does not assume any
obligation, to update these forward-looking statements. The forward-looking
statements contained in this news release are expressly qualified by this
cautionary statement.

For further information:

For further information: David J. Howe, President and Chief Executive
Officer, Jim Griffiths, Chief Financial Officer, t: (905) 312-8422, e:
d.howe@enssolutions.com, jimgriffiths@enssolutions.com, www.enssolutions.com

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890