Press release from Marketwire
ZENN Motor Company Reports 2013 Second Quarter Results and Testing Update
Thursday, May 30, 2013
ZENN Motor Company Reports 2013 Second Quarter Results and Testing Update08:30 EDT Thursday, May 30, 2013
TORONTO, ONTARIO--(Marketwired - May 30, 2013) - ZENN Motor Company Inc. (TSX VENTURE:ZNN) ("ZENN" or the "Company"), today announced its unaudited financial results for the three and six months ended March 31, 2013. All amounts are expressed in Canadian dollars.
In the three and six months ended March 31, 2013, net losses from continuing operations were $448,981 and 769,298, respectively, or $0.01 and $0.02, respectively, per share. For the corresponding three and six periods in the prior year, net losses from continuing operations were $347,500 and $713,290, respectively, or $0.01 and $0.02, respectively, per share.
At March 31, 2013, the Company had working capital of $956,006 and cash, including cash, cash equivalents and short-term investments, totaling $1,185,376, compared to working capital of $1,675,361 and cash of $1,937,592, respectively, at September 30, 2012.
ZENN also reported that the testing laboratory has commenced preparation for testing of EESU layers produced by EEStor, Inc. Initial work by the laboratory involves calibration and verification of testing equipment. EEStor has reported that in producing layers for the testing, it encountered, at high voltages, an anomaly that may be related to ambient humidity. ZENN has been advised by its consultant that this is not an uncommon occurrence with high performance layers. EEStor has advised that it believes it is addressing the issue by using established procedures. Accordingly, it will conduct the tests in stages. Initial tests will focus on resistance and capacitance of its new polymer as well as the permittivity over voltage characteristics of the proprietary CMBT produced by EEStor. Reports from the initial phase of the testing are expected in the next week with further reports to follow as more detailed testing is undertaken and as the hydrology issue is addressed.
Readers are encouraged to read the Company's unaudited condensed interim consolidated financial statements for the three and six months ended March 31, 2013, the corresponding Management's Discussion and Analysis and the Company's Annual Information Form dated January 24, 2013. All of these documents have been filed and are available for viewing on SEDAR at www.sedar.com and posted on the Company's website at www.ZENNcars.com.
About ZENN Motor Company Inc.
The Company's goal is to be the provider of leading edge power storage solutions and related technologies to the transportation industry. The Company also holds an equity interest in EEStor, Inc.
EEStor's electrical energy storage units ("EESU") which are under development have the potential to enable OEM and Tier 1 partners to deliver advanced electric transportation solutions to their customers. The Company's Technology Agreement with EEStor provides certain exclusive rights to purchase and deploy EEStor's EESU technology which has been filed and is available for viewing on SEDAR at www.sedar.com.
Certain statements and documents referred to in this release, other than statements of historical fact, may include forward-looking information that involves various risks and uncertainties that face the Company; such statements may contain such words as "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, and may be based on management's current assumptions and expectations related to all aspects of the automotive industry, consumer demand for zero emission transportation solutions and the global economy. Risks and uncertainties that may face the Company include, but are not restricted to: the EEStor energy storage technology may not be successfully commercialized at all, in a manner providing the features and benefits expected while under development, or on a timely basis or the Company may not be able to successfully incorporate this technology into its current or proposed products; steps taken by the Company to protect its proprietary rights may not be adequate or third parties may infringe or misappropriate the Company's proprietary rights; the Company has a history of losses from operations and may not be able to obtain financing, if and when required, to fund future expenditures for general administrative activities, including sales and marketing and research and development, expansion, strategic acquisitions or investment opportunities or to respond to competitive pressures; competitors may develop products which offer greater benefits to consumers, have greater market appeal or are more competitively priced than those offered by the Company; the Company may be exposed to product liability claims which exceed insurance policy limits; the Company is dependent on the ability and experience of a relatively small number of key personnel; new products introduced by the Company may not be accepted in the market or to the extent projected; new laws and regulations may be enacted or existing ones may be applied or governmental action may be taken in a manner which could limit or curtail the production or sale of the Company's products; and the Company may be negatively affected by reduced consumer spending due to the uncertainty of economic and geopolitical conditions. These risks and uncertainties may cause actual results to differ from information contained in this release, when estimates and assumptions have been used to measure and report results. There can be no assurance that any statements of forward-looking information contained in this release will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements.
These and all subsequent written and oral statements containing forward-looking information are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Except as required by applicable laws, the Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change. Readers are cautioned not to place undue reliance on any statements of forward looking information that speak only as of the date of this release. Additional information identifying risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in the Company's current Annual Information Form and its other filings with the various Canadian securities regulators which are available online at www.sedar.com.
Information contained in this release relating to EEStor, Inc. or the energy storage technology being developed by EEStor has not been reviewed by EEStor and EEStor does not assume any responsibility for the accuracy or completeness of such information.
Unless otherwise indicated, public disclosures by EEStor of developments in the commercialization of its energy storage technology have not been independently verified by ZENN. EEStor's energy storage technology is still under development and a number of further development milestones must be achieved before commercial viability can be established. There are significant risks associated with the development of new technologies such as EEStor's energy storage technology and readers are directed to the "Risk Factors" disclosed in ZENN's most recent Annual Information Form filed on SEDAR.
FOR FURTHER INFORMATION PLEASE CONTACT:
Neither 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.Contact Information:
ZENN Motor Company Inc.
Chief Financial Officer
416-535-8395 ext. 220