TSXV: CST
- Commercial project in Saint-Félicien (QC) reaches final
construction stage.
- Valorisation Carbone Québec CO2 capture unit continues
steady 24/7 operations.
- First CO2 utilizations units to be installed at VCQ site
before year end.
QUEBEC CITY, Oct. 18, 2018 /CNW Telbec/ - CO2
Solutions Inc. (the "Corporation" or "CO2
Solutions") (TSXV: CST) today announced its financial results
for the fourth quarter and financial year ended June 30, 2018.
The Corporation's detailed financial statements and management's
discussion and analysis ("MD&A") will be filed and available on
www.sedar.com.
Fourth Quarter and Subsequent Operational Highlights
- The Saint-Félicien project is close to completion. The
equipment is presently being installed on the site of the Resolute
Forest Products pulp mill in Saint-Félicien (QC). The Corporation's
30 tonne per day commercial plant will capture CO2 from
the pulp mill and supply that CO2 to the adjacent Serres
Toundra greenhouse. The commissioning of the plant is expected to
start in November 2018. A six-month
demonstration period will follow the commissioning of the plant,
after which the Corporation will start recording its first
commercial revenues derived from the sale of the CO2 to
the greenhouse.
- The $28.5 million Valorisation
Carbone Québec ("VCQ") demonstration project will be welcoming
the first CO2 utilization technologies and a rotating
packed bed contactor in the coming weeks at the Chimie Parachem
site in Montreal-East (QC). The packed column CO2
capture plant installed at that location continues to show
operational stability on a 24/7 basis and continues to meet
expectations. Operation of the VCQ capture unit meets the previous
environmental claims made by the Corporation relative to its
proprietary enzymatic technology, i.e. no toxic emissions, no toxic
effluents, no toxic materials, no degradation of the solvent. These
results are consistent with those of the recently completed life
cycle analysis of CO2 Solutions' technology, details of
which will be presented in October
2018 at the GHGT-14 Conference in Melbourne, Australia. The Corporation
continues to encourage other CO2 capture technology
providers to publicly release the life cycle analyses of their own
processes.
- On April 9, 2018, two of the
Corporation's eight entries in the NRG COSIA Carbon XPRIZE
successfully passed Round 2 of the competition. These selected
entries, which the Corporation had announced as joint entries in
2017, were with Carbicrete of Montreal (QC) and CERT of Toronto (ON). CO2 Solutions and
these partners shared USD $500,000
for each of the selected entries in Round 2, for a total of USD
$500,000 for CO2
Solutions, which the Corporation received in May 2018.
- On July 17, 2018, Hydro Quebec,
the provincially owned electrical utility, through its
Laboratoire des technologies de l'énergie (LTE), joined the
VCQ Project as a service provider partner.
- On August 7, 2018, the
Corporation announced it had received an additional $375,000 contribution from Natural Resources
Canada
- On June 6, 2018, the
Corporation's technology was showcased in a presentation given at
the Oil Sands Innovation Summit in Calgary (AB) by Natural Resources Canada's
CanmetENERGY research centre. The presentation highlighted the
technology's capacity to rely on low-grade heat for its operation
and the availability of such heat in sufficient quantities to drive
the capture process in a heat integration scheme, without impacting
the steam cycle of a heavy oil operation plant.
Management Commentary
"CO2 Solutions
continues its expansion as a major carbon tech company through its
leadership of the VCQ project and the upcoming launch of its
commercial capture unit. By early 2019, the Corporation will have
two capture units permanently operating on industrial sites, which
is more than any other second-generation capture technology. These
units enable CO2 Solutions to showcase the tangible
economic and environmental benefits of the enzymatic technology to
prospective clients and to maintain its competitive lead by
accelerating the continued development of the Corporation's
technology," stated Evan Price,
President and Chief Executive officer of CO2 Solutions
"CO2 Solutions' large and growing pipeline of commercial
opportunities is highly interested in the Corporation's operating
units and management looks forward to convert this interest into
additional commercial transactions going forward."
Summary of Financial Results
Revenues and net loss
Revenues of $0.65 million were
recorded for the financial year ended June
30, 2018, relating to the winnings from the NRG COSIA Carbon
XPRIZE and a service contract. $0.05 million was recorded for the same
period in the prior year. The net loss for the financial year ended
June 30, 2018, decreased by
$2.7 million to $1.9 million, reflecting the increased
activities of the Saint-Félicien and VCQ projects, a gain in the
determination of the carrying value of a reimbursable contribution,
and decreases in costs associated with business development and
general and administrative expenses.
Research and Development Expenses
Research and development expenditures, before tax credits and
government assistance, increased by $6.9 million to $10.6 million for the financial year ended
June 30, 2018, compared with
$3.6 million for the prior year.
The change reflects an increase in research and development
activities related to the VCQ and Saint-Félicien projects.
Government assistance for the financial year ended June 30, 2018 was $9.56 million, a $7.54 million increase from the prior
financial year. This government assistance comes in the form of
subsidies granted to the Corporation mainly by the Quebec government for the VCQ project, as well
as Sustainable Development Technology Canada, and Technoclimat
(Transition Énergétique Québec) for the Saint-Félicien
project.
Business Development Expenses
Business development expenses were $0.43 million for the financial year ended
June 30, 2018, compared to
$0.65 million for 2017.
General and Administrative Expenses
General and administrative expenses totaled $2.16 million for the financial year ended
June 30, 2018, in line with the
amount of $2.22 million for the
prior financial year.
Liquidity and Financial Position
As at June 30, 2018, the Corporation
held approximately $7.0 million
in cash and cash equivalents, consisting mainly in advances
received from the Quebec
government earmarked for the VCQ project, $1.4 million in subsidies receivable and
$0.2 million in provincial tax
credits receivable in the short-term, amounting in total to liquid
assets of approximately $8.6 million ($3.4 million as at June 30, 2017).
With the anticipated receipt of the proceeds from government
assistance related to the Saint-Félicien and VCQ projects, the
potential for additional loans secured by provincial R&D tax
credits and other financing options currently under evaluation and
negotiation, along with the close monitoring of operating expenses,
management believes the Corporation should have sufficient funds to
meet its working capital requirements for at least the next 12
months.
A more comprehensive discussion of the Corporation's operations,
financing activities, as well as CO2 Solutions'
audited consolidated financial statements will be available on the
Corporation's website at www.co2solutions.com and in the
Corporation's filings at www.sedar.com.
Grant of Deferred Share Units (DSU's)
On October 18, 2018, in accordance
with the terms of the respective DSU plan that was approved in
November 2015, the Corporation's
Board of Directors granted 2,086,875 DSU's to the non-executive
Directors of the Corporation. In accordance with the terms of the
plan, these DSU's were valued at a weighted average unit price of
$0.09 per share.
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, Utilization and Sequestration
(CCUS), 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 such as
CO2 Solutions' future economic performance, and
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,
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.
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.
SOURCE CO2 Solutions Inc.