Quebec City, Quebec, November 22, 2017 – CO₂ Solutions Inc. (the “Corporation” or “CO₂ Solutions”) (TSX-V: CST) today announced its financial results for the three-month period ended September 30, 2017. The Corporation’s detailed financial statements and management’s discussion and analysis (“MD&A”) will be filed and available on www.sedar.com.
Three-month Period ended September 30, 2017 and Subsequent Operational Highlights
Valorisation Carbone Québec (“VCQ’’) project
NRG COSIA XPRIZE
“We are pleased that our first commercial project in Saint-Félicien continues as planned with an expected commissioning in 2018,” said Evan Price, President and Chief Executive Officer at CO₂ Solutions. “In addition, we are very encouraged by the activities in our Valorisation Carbone Québec (VCQ) project. This project is exceeding our expectations and shaping up to be the world’s most comprehensive CO₂ capture and utilization (CCU) demonstration site. Our business development pipeline is active and our recent announcement with Seneca to realize the preliminary engineering of a commercial unit, is a confirmation of this.”
Summary of financial results
Revenues and net loss
The Corporation recorded $0.02 million in revenues for the three-month period ended September 30, 2017 related to a preliminary engineering study performed during the period. The Corporation had no revenues for the same period in 2016. Net loss for the three-month period ended September 30, 2017 decreased by $0.65 million from the same period last year to $0.74 million, reflecting the increase in government assistance relating to the Saint-Félicien and VCQ projects, partially offset by the increase in research and development expenses associated with these same projects.
Research and Development Expenses
Research and development expenditures, before tax credits and government assistance, increased by $3.0 million to $3.6 million for the three-month period ended September 30, 2017, compared with $0.60 million for the same period last year. The change reflects an increase in research and development activities associated with the Saint-Félicien and VCQ projects.
Government assistance for the three-month period ended September 30, 2017 was $3.5 million, compared to $nil million for the same period in 2016. This government assistance comes in the form of subsidies granted to the Corporation mainly by the Government of Québec for the VCQ project, as well as assistance received from Sustainable Development Technology Canada, and Technoclimat (Transition Énergétique Québec) associated with the Saint-Félicien project.
General and administrative expenses
General and administrative expenses totalled $0.44 million for the three-month period ended September 30, 2017, down slightly from the $0.46 million for the same period in 2016.
Liquidity and financial position
As at September 30, 2017, the Corporation held approximately $3.29 million in cash and cash equivalents, consisting primarily of advances received from the Government of Quebec applicable to the VCQ project, $0.62 million in receivables, and $0.25 million in provincial tax credits receivable in the short-term, for total liquid assets of approximately $4.15 million ($3.43 million as at June 30, 2017).
Such amounts may prove insufficient to fund the Corporation’s forecasted working capital requirements for the next 12 months. Through current and ongoing negotiations with potential funding partners and Provincial and Federal government agencies, the Corporation’s management is actively seeking to raise the necessary additional capital to meet its funding requirements.
A more comprehensive discussion of the Corporation’s operations and financing activities along with CO₂ Solutions’ audited consolidated financial statements for the year ended June 30, 2017, the unaudited condensed interim consolidated financial statements for the three-month period ended September 30, 2017 and related notes included therein and the Management’s Discussion and Analysis for the three-month period ended September 30, 2017, will be found on the Corporation’s website at www.CO₂solutions.com and in the Corporation’s filings on www.sedar.com.
Grant of Options
The Corporation announced that it has granted, on November 22, 2017, a total of 2,118,000 stock options to certain of its directors, officers and employees. Each stock option, governed by the stock option plan of the Corporation, allows the holder thereof to acquire one common share of the Corporation until November 22, 2022 for a price of $0.11 per common share.
Grant of Deferred Share Units (DSU’s) and Restrictive Share Units (RSU’s)
On November 22, 2017, in accordance with the terms of the respective DSU and RSU plans that were approved in November 2015, the Corporation’s Board of Directors granted 1,652,642 RSU’s to certain officers, consultants and employees and 1,313,636 DSU’s to the non-executive Directors of the Corporation. In accordance with the terms of the respective plans, these DSU’s and RSU’s were valued at $0.11 per share, that being the last closing price of the Corporation’s Common Shares on the TSXV immediately prior to the date as at which market value of the units is determined, that date being November 21, 2017. The RSU’s granted will fully vest on January 1, 2018.
Results of Annual General Meeting of Shareholders
At the Annual General Meeting of Shareholders of the Corporation, held today, November 22, 2017, in Quebec City, QC, shareholders re-elected Evan Price, Glenn R. Kelly, Robert Manherz, Kimberley Okell, and Jocelyn Proteau to the Board of Directors. Shareholders also voted to reappoint PricewaterhouseCoopers LLP/s.r.l./s.e.n.c.r.l., Chartered Professional Accountants, as auditor of the Corporation for the fiscal year ending June 30, 2018.
About CO₂ Solutions Inc.
CO₂ Solutions is an innovator in the field of enzyme-enabled carbon capture and has been actively working to develop and commercialize the technology for stationary sources of carbon pollution. CO₂ Solutions’ technology lowers the cost barrier to Carbon Capture, Sequestration and Utilization (CCSU), positioning it as a viable CO₂ mitigation tool, as well as enabling industry to derive profitable new products from these emissions. CO₂ Solutions has built an extensive patent portfolio covering the use of carbonic anhydrase, or analogues thereof, for the efficient post‐combustion capture of carbon dioxide with low‐energy aqueous solvents. Further information can be found at www.CO₂solutions.com
CO₂ Solutions Forward-looking Statements
Certain statements in this news release may be forward-looking. These statements relate to future events, including statements relating to the Saint-Félicien project, potential results from the preliminary engineering study in the metallurgical industry, NRG COSIA XPRIZE and the VCQ projects of the Corporation and their evolution, the transformation of the Corporation from a development company to a commercial operator and its progression, and the ability of the Corporation to meet working capital requirements. These statements reflect the current assumptions and expectations of management. Factors that could cause actual results to differ materially from such forward-looking statements include, but are not limited to, the ability of the Corporation to meet its working capital requirements, general business and economic uncertainties, third party events and adverse market conditions as well as those risks set out in the Corporation’s public documents filed on SEDAR. Readers are cautioned not to place undue reliance on such forward-looking statements. CO₂ Solutions undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law.
Investor Relations and Media Contact:
Heidi Christensen Brown
Neither the 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.