(TheNewswire)
TORONTO, CANADA - TheNewswire - August 27, 2024 – ONEnergy Inc. (“ONEnergy” or the "Company”) (NEX: OEG.H), today announced that it has filed its financial results as at and for the three- and six-month periods ended June 30, 2024 and provides a corporate update.
Financial results
For the three-month period ended June 30, 2024, net income and comprehensive income was $10,321,000 compared to net loss and comprehensive loss of ($580,000), during same period in 2023.
For the six-month period ended June 30, 2024, net income and comprehensive income was $10,102,000 compared to net loss and comprehensive loss of ($833,000), during same period in 2023.
Net income and comprehensive income for the three- and six-month periods ended June 30, 2024 included a gain on settlement of unsecured liabilities of $10,480,000 related to the Creditor Proposal (see “Creditor Proposal” below for discussion).
Net loss and comprehensive loss for the three- and six-month periods ended June 30, 2023 included an additional litigation provision of $258,000 related to the Default Motion (see “CWave Motion” below for discussion).
For further information on the financial results of the Company, please review the Company’s unaudited interim condensed consolidated financial statements and management’s discussion and analysis of financial condition and results of operations for the three- and six-month periods ended June 30, 2024, available under the Company’s issuer profile on SEDAR+ at www.sedarplus.ca.
CWave Motion and Creditor Proposal
As previously reported on April 28, 2023, the Company is 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 Gas & Power Inc. (together with the Company, the “Defendants”). CWave brought a Motion for Default Judgment (“Default Motion”) as a result of the Defendants not responding to a Verified Complaint that was filed in the NY Court. On July 17, 2023, the NY Court granted CWave’s Default Motion. On March 1, 2024, a final judgment of U.S.$963,520 was issued by the NY Court against the Defendants (the “Debt”).
On June 26, 2024, the Company implemented the proposal that it filed pursuant to the Bankruptcy and Insolvency Act (Canada) (“BIA”) on May 30, 2023 (the “Proposal”) and satisfied $11,101,000 of unsecured outstanding liabilities by issuing 124,277,690 common shares of the Company, including 15,322,862 common shares to CWave to satisfy the Debt. The common shares that were issued to the Company’s directors, officers or consultants in connection with the Proposal are subject to a four-month hold period per the policies of the TSX Venture Exchange (the “Exchange”). The issuance of common shares by the Company was full and final satisfaction for all of the Company’s unsecured claims, including the Debt, and all unsecured claims as against the Company incurred prior to June 26, 2024 have been forever released.
Trading in the Company’s common shares was reinstated by the Exchange on July 2, 2024.
Secured grid promissory note debt financing
Between May 25, 2024 and August 27, 2024, Stephen J.J. Letwin, a director and Chairman of the Board of Directors, provided advances under a secured grid promissory note (the “Secured Note”) to the Company totaling $55,000. The Secured Note is not convertible into securities of the Company, is secured by a first-ranking security over the Company’s assets and bears an annual interest rate at 10%. The borrowing limit on the Secured Note was amended and increased from $450,000 to $650,000. The maturity date on the Secured Note of December 31, 2023 was amended and extended to December 31, 2024.
About ONEnergy Inc.
ONEnergy common shares are listed on the NEX board of the TSX Venture Exchange under the symbol “OEG.H”. Material information about ONEnergy can be found on SEDAR+ under the Company’s issuer profile at www.sedarplus.ca. ONEnergy's corporate website may be found at www.onenergyinc.com.
For additional information please contact:
Ray de Ocampo, Chief Financial Officer, irinfo@onenergyinc.com, +1 (647) 253-2534
This news release contains certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements in this news release include, but are not limited to, statements about the business and operations of the Company, the Proposal to its creditors, the Default Motion and the Debt, and the settlement of the Debt and Default Motion. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements and there can be no assurance that such expectations will prove to be correct. The forward-looking statements contained in this news release are made as of the date hereof, and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except a required by applicable securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
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.
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