Stock Listing: MP:TSXV
Stock Listing (US): MCTYF: OTC
Web Site: www.microplanet.com
WOODINVILLE, WA, May 23, 2012 /CNW/ - (MP:TSXV & MCTYF:OTC) - MicroPlanet Technology Corp. ("MicroPlanet" or the "Company") a provider of smart grid technology which significantly increases efficiency, quality, and conservation of electricity, today reported interim unaudited consolidated financial results for the three-month period ended March 31, 2012 (the "Quarter"). All dollar figures are reported in U.S. currency, unless otherwise stated.
- Sales of $77,962 to a utility company in Australia
- Margins on sales of 38%
- Operating expenses of $520,100
- Income of $307,075, resulting from a $936,021 change of fair value of warrant liability
- Sale of inventory to management of $138,484 and loans from investors of $75,000 to finance continuing operations
"MicroPlanet is finally nearing completion and certification of its flagship category-changing product line and fostering relationships with potential testimonial customers in appropriately targeted jurisdictions," stated Brett Ironside, MicroPlanet President and CEO. "The past quarters have presented unique challenges due to cash flow limitations, but we were able to weather the storm thanks to the continued support of our employees and several key investors in Canada and the United States. Because of their support, we were able to continue critical work on the certification of products and development of customer relationships."
Ironside continued, "We expect to receive final certification for various new models of our new commercial product line over the next few months, and will then deliver these products to potential customers in Australia for final testing and verification. We remain encouraged that these products will deliver on the key aspects of our value proposition - bi directionality, full data, improved power quality, and reduced costs - which will lead to significant testimonial sales in the coming quarters, followed by meaningful sales to these and additional customers thereafter."
Subsequent to the end of the Quarter, the Company borrowed $105,000 from investors to fund operations. It is the intent of the investors to invest into capital stock of the Company in a future private placement, as approved by the TSX Venture Exchange. The company is also working with its current debt holders to extend these maturity dates and also potentially increase their debt positions.
Net income for the Quarter was $307,075 (including a gain of $936,021 resulting from a change of fair value of warrant liability) or $0.00 per share (basic and diluted) compared to a comprehensive loss of $615,088 or $0.01 loss per share (basic and diluted) in the same Prior Year Quarter.
The financial statements for the Company were prepared using International Financial Reporting Standards ("IFRS"), in accordance with Canadian Accounting Standards Board and securities regulatory commission requirements. Results for the Quarter are unaudited.
MicroPlanet's financial information for the three-month periods ended March 31, 2012 and 2011, along with the accompanying Management's Discussion and Analysis for the same period is available on SEDAR (www.sedar.com) and company's website at www.microplanet.com.
| Income Statement (unaudited)
| 3-months ending
March 31, 2012
| 3-months ending
March 31, 2011
|Revenue||$ 77,962||$ 1,025,714|
|Gross Margin||$ 29,450||$ 340,494|
|Net Income (Loss)||$ 307,075||$ (615,088)|
|Basic and diluted income (loss) per share||$ (0.00)||$ (0.01)|
|Weighted average shares outstanding||103,402,097||63,250,809|
Private Placement of Notes
MicroPlanet is further pleased to announce that it intends to issue, by private placement, up to $1.5 million in secured, convertible notes of the Corporation (the "Notes"). The Notes have a two-year term and bear interest at the rate of twelve percent (12%) per annum payable in arrears upon maturity. The holders of the Notes will have the option to convert the principal amount into common shares in the capital of the Corporation at a conversion price of $0.07 per share, or receive full repayment in cash at the end of the term. The Corporation may, at its option, at any time before the maturity date, pre-pay and redeem the Notes, provided that interest in paid in full to the original maturity date. Closing of the financing is expected to occur on or about June 22, 2012 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and applicable securities regulatory authorities. The Notes will be sold pursuant to applicable registration and prospectus exemptions to qualified investors in Canada.
This news release does not constitute an offer to sell or a solicitation of any offer to buy the securities in the United States. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of such Act.
About MicroPlanet Technology Corp.
MicroPlanet Technology Corp. solutions improve power quality and save energy by dynamically managing incoming voltage to a home or business through the use of patented, advanced power electronics. MicroPlanet's technology has been deployed in seven countries by more than 20 utilities, the U.S military and multiple commercial customers to save energy, improve power quality and grid efficiency and to facilitate the integration of renewable energy sources, including solar and wind. MicroPlanet is based in Seattle, WA and is listed on the TSX Venture Exchange (TSX-V) trading under the stock symbol: MP. www.microplanet.com.
THIS NEWS RELEASE MAY CONTAIN FORWARD-LOOKING INFORMATION. ACTUAL FUTURE RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED. THE RISKS, UNCERTAINTIES AND OTHER FACTORS, BOTH KNOWN AND UNKNOWN, THAT COULD INFLUENCE ACTUAL RESULTS MAY BE SUBSTANTIAL AND INCLUDE THOSE DESCRIBED IN DOCUMENTS FILED WITH REGULATORY AUTHORITIES, SUCH AS THE COMPANY'S MOST RECENTLY FILED ANNUAL AND QUARTERLY REPORTS. ACCORDINGLY, NO ASSURANCES CAN BE GIVEN THAT ANY OF THE EVENTS ANTICIPATED BY THE FORWARD-LOOKING STATEMENTS WILL TRANSPIRE OR OCCUR, OR IF ANY OF THEM DO SO, WHAT BENEFITS THE COMPANY WILL DERIVE THEREFROM.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THE TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information:
MicroPlanet Investor Relations:
MicroPlanet Company Contacts:
President & Chief Executive Officer