VANCOUVER, BC / ACCESSWIRE / May 9, 2019 / For the nine months ended March 31, 2019 ('Q3 2019'), revenue increased to $2,303,999 from $2,303,380 in the corresponding period in fiscal 2018 ('Q3 2018'). Electricity generation for the nine months ended March 31, 2019 was below average at the hydro plants due to unseasonably low temperatures which reduced the hydrology. Electricity sales for Q3 2019 were $164,710 lower than in Q3 2018. Revenue from engineering services for Q3 2019 were $56,700 lower than in Q3 2018 due to decreased consulting activity for the private hydropower industry in BC.
The net loss attributable to shareholders of the company for Q3 2019 was $505,724 as compared to the net loss of $24,815 for Q3 2018. The increase in net loss for Q3 2019 as compared to the net loss for Q3 2018 is primarily due to (i) lower electricity sales, (ii) lower engineering consulting revenue, and (iii) the non-recurring expense of approximately $459,219 incurred in connection with a legal proceeding that was ultimately resolved pursuant to an order of the Supreme Court of British Columbia released on January 11, 2019 which affirmed the properly constituted board of the Company. Net loss per share in Q3 2019 was $0.01 as compared to a net loss per share of $nil in Q3 2018.
The capital expenditures in respect of the development of run-of-river hydro projects in British Columbia for Q3 2019 was $44,988 as compared to $436,727 for Q3 2018. On February 14, 2019, the Company received notice that BC Hydro had suspended the Standing Offer Program indefinitely which impacted the Company's proposed 4.3MW Newcastle Creek Project and 5MW McKelvie Creek Project.
At March 31, 2019, the Company had a cash balance of $642,871 as compared to $1,131,414 at June 30, 2018. The total loan principal outstanding to the Canadian Western Bank was $14,051,138 at March 31, 2019 as compared to $14,539,990 at June 30, 2018. Loans payable at March 31, 2019 included a current portion of $992,841 and a non-current portion of $13,058,297.
The company is a run-of-river hydro developer, operator and engineering firm. The company wholly owns or has a proportionate interest in a net total 12 MW of operating facilities in British Columbia, and a Vancouver Island grid connection and utility carrying on business as Kyuquot Power Ltd. The company also has 9.4 MW of construction ready run-of-river projects, and applications and land tenures on another 24 potential hydroelectric sites totaling over 150MW of installed capacity in British Columbia.
Advanced Notice Policy
Separately, the Company announces the approval by its board of directors of an advance notice policy (the "Policy"), which, among other things, includes a provision that requires advance notice to the Company in certain circumstances where nominations of persons for election to the board of directors are made by shareholders of the Company.
Among other things, the Policy fixes a deadline by which holders of record of common shares of the Company must submit director nominations to the Corporate Secretary of the Company prior to any annual or special meeting of shareholders at which directors are to be elected, and sets forth the specific information that a shareholder must include in the written notice to the Corporate Secretary of the Company for an effective nomination to occur. No person will be eligible for election as a director of the Company unless nominated in accordance with the provisions of the Policy.
In the case of an annual meeting of shareholders, notice to the Company must be made not less than 30 nor more than 65 days prior to the date of the annual meeting; provided, however, that in the event that the annual meeting is to be held on a date that is less than 50 days after the date on which the first public announcement of the date of the annual meeting was made, notice may be made not later than the close of business on the 10th day following such public announcement.
In the case of a special meeting of shareholders (which is not also an annual meeting), notice to the Company must be made not later than the close of business on the 15th day following the day on which the first public announcement of the date of the special meeting was made.
The Policy is effective and in full force and effect as of the date it was approved by the Company's board of directors. In accordance with the terms of the Policy, the Policy will be put to shareholders of the Company for approval at the next Annual General Meeting ("AGM"), and if the Policy is not confirmed at the meeting by ordinary resolution of the shareholders, the Policy will terminate and be of no further force and effect following the termination of the AGM.
The full text of the Policy will be available via SEDAR at www.sedar.com.
Forward-looking Information - Synex includes forward-looking information in this press release within the meaning of applicable Canadian securities laws. Forward-looking information included in this press release reflect the current expectations of Synex management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as "anticipates", "believes", "budgets", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedule", "should", "target", "will", "would" and the negative of these terms and other similar terminology or expressions have been used to identify the forward-looking information, which includes, without limitation: any forecasts with respect to financial performance and capital expenditures and the nature, timing, benefits and expected costs of future hydroelectric project development.
Forward-looking information involves significant risk, uncertainties and assumptions. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking information. These factors or assumptions are subject to inherent risks and uncertainties surrounding future expectations generally, including those identified from time to time in the forward-looking information. Such risk factors or assumptions include, but are not limited to: changes in economic conditions, risks associated with the construction and operation of hydroelectric facilities and changes in government policies. Synex cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors should be considered carefully and undue reliance should not be placed on the forward-looking information. For additional information with respect to certain of these risks or factors, reference should be made to the continuous disclosure materials filed from time to time by Synex with Canadian securities regulatory authorities. Synex assumes no obligation or intention to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.
AdditionalInformation - This press release should be read in conjunction with Synex's Management Discussion and Analysis and Consolidated Financial Statements. This and additional information can be accessed at www.synex.com and under Synex's company profile on www.sedar.com.
