CHANTILLY, VA, Jan. 24, 2013 /CNW/ - BlueScout Technologies Ltd. (TSXV: SCT) the "Company", providers of the BlueScout OCS-210 for optimized wind energy generation, announces today that it has filed
a voluntary petition under Chapter 7 of the United States Bankruptcy
Code.
As previously announced on January 3, 2013, the Company's viability and
ability to continue as a going concern was dependent on securing
additional capital. The Company had been actively seeking to raise
additional capital through debt, equity or other capital raising
efforts while also considering other strategic alternatives. The
Company was unsuccessful in raising such additional capital or
completing a strategic transaction, in large part due to ongoing legal
matters. To date, even though the Company has not paid out any damages
relative to legal disputes, the increasing cost of defending against
multiple legal actions by Philip Rogers and Alisa Rogers, the former
founders (and, in the case of Mr. Rogers, the former CEO) of the
Company and their related entities, Optical Air Data Systems LLC and
Falcon Fifty LLC, has severely impacted the Company's cash flow and
operations.
Accordingly, after multiple reviews of the various alternatives
available to the Company, the board of directors concluded that
voluntarily entering the Chapter 7 process is the best available option
to the Company and its stakeholders. The bankruptcy filing was made in
The United States Bankruptcy Court for the District of Delaware.
The Company also announces that Susan Nickey, Martin Crotty and David
Garman have resigned as directors of the Company, and John Green has
resigned as the Chief Financial Officer of the Company.
About BlueScout
BlueScout Technologies (TSXV: SCT) increases energy production and decreases operating costs by applying
groundbreaking microgeographical wind flow sensing to turbine control
systems that increases the effectiveness and availability of wind
turbines. BlueScout combines precise, optically based wind forecasting
with advanced predictive control architectures to ready the turbine for
the imminent wind inflow changes - optimizing energy production and
reducing the harmful effects of wind turbulence on the turbine. With
extensive operating data on multiple wind turbine models, BlueScout is
the leading, value-added innovator in wind turbine performance and
optimization.
Forward-Looking Information
This news release includes certain forward-looking statements within the
meaning of Canadian securities laws. Forward-looking statements involve
risks, uncertainties and other factors that could cause actual results,
performance, prospects and opportunities to differ materially from
those expressed in such forward-looking statements. Forward-looking
statements in this news release, include, but are not limited to,
economic performance and future plans and objectives of BlueScout
Technologies. Any number of important factors could cause actual
results to differ materially from these forward-looking statements as
well as future results. Although BlueScout believes that the
assumptions and factors used in making the forward-looking statements
are reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release, and
no assurance can be given that such events will occur in the disclosed
timeframes or at all. BlueScout Technologies disclaims any intention or
obligation to update or revise any forward-looking statement, whether
as a result of new information, future events or otherwise.
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.
SOURCE: BlueScout Technologies, Inc.
BlueScout Technologies Ltd.
Jo Major
President & CEO
+1 408-982-3733
jmajor@BlueScout.com