(TheNewswire)
T oronto , ON - TheNewswire- April 28, 2023 - ONEnergy Inc. (“ ONEnergy ” or the" Company ”) (NEX:OEG.H), today announced that it has filedits financial results for the year ended December 31, 2022.
Financial results
For the three-month period ended December 31, 2022, netloss and comprehensive loss was $1.5 million compared to net loss andcomprehensive loss of $0.4 million during the same period in 2021. During the three-month period ended December 31, 2022 the Companyrecognized of a provision of $1.0 million (US$0.8 million) for theDefault Motion filed by CWave, as the terms are defined below.
Net loss and comprehensive loss for the twelve-monthperiod ended December 31, 2022 amounted to $1.5 million compared tonet loss and comprehensive loss of $1.5 million during the same periodin 2021. During 2022, the Company recognized a net gain of $0.1million arising from: (i) a gain of $1.1 million on the derecognitionof net liabilities as a result of the bankruptcy of its wholly ownedsubsidiary, Sunwave Gas & Power Inc. (“Sunwave Canada”) onFebruary 23, 2022, offset by (ii) the recognition of a provision of$1.0 million (US$0.8 million) for the Default Motion filed by CWave,as the terms are defined below.
For further information on the financial results of theCompany, please review the Company’s audited consolidated financialstatements, and management’s discussion and analysis of financialcondition and results of operations for the years ended December 31,2022 and 2021, available under the Company’s profile on www.sedar.com .
CWave litigationupdate
In May 2019, in connection with the saleof its U.S. subsidiaries to C Wave Power & Gas Inc. (“CWave”),Sunwave Canada issued a promissory note payable to CWave (“CWaveNote”) pursuant to a Transition Services Agreement between SunwaveCanada and CWave. In February 2022,Sunwave Canada was assigned into bankruptcy in Canada, with thebankruptcy subsequently recognized in the U.S., under chapter 15 oftitle 11 of the U.S. Code, on August 26, 2022.
On March 2, 2022, CWave filed a Motion for SummaryJudgment in Lieu of Complaint (the “Motion”) with the SupremeCourt of the State of New York (the “NY Court”) against ONEnergyand Sunwave Canada (collectively the “Defendants”). The Motionsought a summary judgment against the Defendants for US$746,742, beingthe principal and interest outstanding as of December 31, 2021, on theCWave Note, plus additional interest and reasonable costs until thejudgment is paid. On November 29, 2022, the NY Court denied theMotion but permitted CWave to file a complaint (the “VerifiedComplaint”).
On December 28, 2022, CWave filed a Verified Complaintagainst the Defendants, seeking US$750,000 plus interest and costs. Without sufficient resources for legal counsel, the Defendants didnot respond to the Complaint by the response date of February 17, 2023and, consequently on March 13, 2023, CWave filed with the NY Court aMotion for Default Judgement (‘’Default Motion”) against theDefendants seeking US$769,237, plus interest and reasonable costsuntil the judgment is paid. The Defendants did not answer theDefault Motion by the due date of April 11, 2023. On April 18, 2023,the NY Court heard the Default Motion however the Default Motion ispending before the NY Court.
Since the Company did not respond to the VerifiedComplaint and Default Motion, the Company determined it is more likelythan not that the Default Motion may be granted, and therefore, as ofDecember 31, 2022, the Company recognized a provision of $1.0 million(US$0.8 million), being the amount of the Default Motion.
Non-convertible debt financing
Between November 29, 2022 and April 28, 2023, StephenJ.J. Letwin, a shareholder and Chairman of the Board of Directors,(“Mr. Letwin”) provided advances to the Company aggregating to$363,000. These advances are not convertible into securities of theCompany, are unsecured, bear an annual interest rate at 10%, and aredue on demand.
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 the Company’sissuer profile at www.sedar.com . ONEnergy'scorporate website may be found at www.onenergyinc.com .
For additional information pleasecontact:
Ray de Ocampo, Chief Financial Officer,irinfo@onenergyinc.com, +1 (647) 253-2534
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.
This news release contains certain"forward-looking information" and "forward-lookingstatements" (collectively "forward-looking statements")within the meaning of applicable securities legislation. Allstatements, other than statements of historical fact, included herein,without limitation, statements relating to the future operating orfinancial performance of the Company or the outcome of the CWavelitigation, are forward-looking statements. Although the Companybelieves that the expectations reflected in these forward-lookingstatements are reasonable, undue reliance should not be placed on themas actual results may differ materially from the forward-lookingstatements and there can be no assurance that such expectations willprove to be correct. The forward-looking statements contained in thisnews release are made as of the date hereof, and the Companyundertakes no obligation to update publicly or revise any forwardlooking 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.
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