(TheNewswire)
Toronto, ON - TheNewswire - August 18, 2023 - ONEnergy Inc. (“ ONEnergy ” or the " Company ”) (NEX:OEG.H) , today announced that it has filed its financial results asat and for the three- and six-month periods ended June 30, 2023 andprovides a corporate update.
Financial results
For the three-month period ended June 30, 2023, netloss and comprehensive loss was ($580,000) compared to net income andcomprehensive income of $551,000, during same period in 2022.
For the six-month period ended June 30, 2023, net lossand comprehensive loss amounted to ($833,000) compared to net incomeand comprehensive income of $458,000, during the same period in 2022.
Net loss and comprehensive loss for the three- andsix-month periods ended June 30, 2023 include an additional litigationprovision of $258,000 related to the Default Motion (see“ CWave Motion ” below for discussion).
Net income and comprehensive income for the three-monthperiod ended June 30, 2022 includes a gain of $959,000 on thederecognition of certain liabilities in the United States of theCompany’s wholly-owned subsidiary, Sunwave Gas & Power Inc.( “ Sunwave Canada ”), as a result of the filingand approval, under chapter 15 of title 11 of the United States Code,to have Sunwave Canada’s assignment into bankruptcy in Canadarecognized in the United States (“ Sunwave Chapter 15 Filing ”). Net income and comprehensive income for the six-monthperiod ended June 30, 2022 includes a gain of $1,168,000 on thederecognition of the net liabilities of Sunwave Canada.
For further information on the financial results of theCompany, please review the Company’s unaudited interim condensedconsolidated financial statements and management’s discussion andanalysis of financial condition and results of operations for thethree-month and six-month periods ended June 30, 2023, available underthe Company’s issuer profile on SEDAR+ at www.sedarplus.ca .
CWave Motion and CreditorProposal
As previously reported on April 28, 2023, the Companyis a defendant in an action commenced by C Wave Power & Gas Inc.(“ CWave ”) in the Supreme Court of the State of New York (the“ NY Court ”). Also a defendant is Sunwave Canada (together with theCompany, the “ Defendants ”). CWave brought a Motion forDefault Judgment (“ DefaultMotion ”) as a result of the Defendants notresponding to a Verified Complaint that was filed in the NY Court.
On July 17, 2023, the NY Court granted CWave’sDefault Motion. A final judgment against the Defendants, with approvalof the final amount sought (the “ Debt ”), beingapproximately U.S.$964,041, is pending issuance by the NY Court.Accordingly, the Company increased its litigation provision by$258,000 (to $1,276,000 (U.S.$964,041)) as a result of the ruling.
The Company expects to satisfy the Debt through theproposal that it filed pursuant to the Bankruptcy and Insolvency Act(Canada) ( “ BIA ”) on May 30, 2023 (the “ Proposal ”) . The Company previously reported on the progress of itsProposal on May 30, 2023 and on June 22, 2023. The Proposal wasapproved by the Company’s unsecured creditors at a meeting held onJune 22, 2023. The Company will make a motion in writing, to theOntario Superior Court of Justice (the “ Ontario Court ”)seeking approval of the Proposal. The Proposal is subject to theapproval of the TSX Venture Exchange (the “ Exchange ”).Following the receipt of requisite approvals by the Ontario Court andthe Exchange and pursuant to the Proposal, the Company will satisfy its unsecured outstanding liabilities inexchange for the issuance of common shares ofthe Company. The issuance of common shares by the Company shall befull and final satisfaction for all of the Company’s unsecuredclaims, including the Debt, and all unsecured claims as against theCompany will be forever released.
Secured grid promissory note debtfinancing
Between May 30, 2023 and August 18, 2023, Stephen J.J.Letwin, a director and Chairman of the Board of Directors, providedadvances under a secured grid promissory note to the Company totaling$180,000 . This note isnot convertible into securities of the Company, is secured by afirst-ranking security over the Company’s assets, bears an annualinterest rate at 10%, and is due on December 31, 2023.
About ONEnergy Inc.
ONEnergy common shares are listed on the NEX board ofthe TSX Venture Exchange under the symbol “OEG.H”. Materialinformation about ONEnergy can be found on SEDAR+ under theCompany’s issuer profile at www.sedarplus.ca . ONEnergy's corporate website may be found at www.onenergyinc.com .
The Company’s common shares remain halted fromtrading pending implementation of the Proposal.
For additional information pleasecontact:
Ray de Ocampo, Chief Financial Officer,irinfo@onenergyinc.com, +1 (647) 253-2534
This news release contains certain"forward-looking information" and "forward-lookingstatements" (collectively "forward-looking statements")within the meaning of applicable securities legislation. Forward-looking statements in this news release include, but are notlimited to, statements about the business and operations of theCompany, the Proposal to its creditors, the Default Motion and theDebt, and the settlement of the Debt and Default Motion. Althoughthe Company believes that the expectations reflected in theseforward-looking statements are reasonable, undue reliance should notbe placed on them as actual results may differ materially from theforward-looking statements and there can be no assurance that suchexpectations will prove to be correct. The forward-looking statementscontained in this news release are made as of the date hereof, and theCompany undertakes no obligation to update publicly or revise anyforward looking statements or information, whether as a result of newinformation, future events or otherwise, except a required byapplicable securities laws. The forward-looking statements containedin this news release are expressly qualified by this cautionarystatement.
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release.
Copyright (c) 2023 TheNewswire - All rights reserved.