Mr. Ray de Ocampo reports
ONENERGY INC. REPORTS 2023 Q3 RESULTS AND PROVIDES CORPORATE UPDATE
ONEnergy Inc. has filed its financial results as at and for the three- and nine-month periods ended Sept. 30, 2023, and has provided a corporate update.
Financial results
For the three-month period ended Sept. 30, 2023, net loss and comprehensive loss was ($196,000) compared with net loss and comprehensive loss of ($470,000) during the same period in 2022.
For the nine-month period ended Sept. 30, 2023, net loss and comprehensive loss amounted to ($1,029,000) compared with net loss and comprehensive loss of ($12,000), during the same period in 2022.
Net loss and comprehensive loss for the nine-month period ended Sept. 30, 2023, included an additional litigation provision of $258,000 related to the default motion (see CWave motion
below for discussion).
Net loss and comprehensive loss for the nine-month period ended Sept. 30, 2022, included a gain of $1,168,000 on the derecognition of certain liabilities in the United States of the company's wholly owned subsidiary, Sunwave Gas & Power Inc. (Sunwave Canada), as a result of the filing and approval, under Chapter 15 of Title 11 of the United States Code, to have Sunwave Canada's assignment into bankruptcy in Canada recognized in the United States.
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-month and nine-month periods ended Sept. 30, 2023, available under the company's issuer profile on
SEDAR+.
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. Also a defendant is Sunwave Canada. CWave brought a motion for default judgment as a result of the defendants not responding to a verified complaint that was filed in the N.Y. court.
On July 17, 2023, the N.Y. court granted CWave's default motion. A final judgment against the defendants, with approval of the final amount sought, being approximately $964,041 (U.S.), is pending issuance by the N.Y. court.
The company expects to satisfy the Debt through the proposal that it filed pursuant to the
Bankruptcy and Insolvency Act (Canada)
(BIA)
on May 30, 2023.
The company previously reported on the progress of its proposal on May 30, 2023, June 22, 2023, and Aug. 18, 2023. The proposal was approved by the company's unsecured creditors at a meeting held on June 22, 2023. A hearing is scheduled for Nov. 28, 2023, for the company to make a motion to the Ontario Superior Court of Justice seeking approval of the proposal. The proposal is subject to the approval of the TSX Venture Exchange. Following the receipt of requisite approvals by the Ontario court and the exchange and pursuant to the proposal, the company
will satisfy its unsecured outstanding liabilities in exchange for the issuance of
common shares of the company. The issuance of common shares by the company shall be full and final satisfaction for all of the company's unsecured claims, including the debt, and all unsecured claims as against the company will be forever released.
Secured grid promissory note debt financing
Between Aug. 19, 2023, and Nov. 24, 2023, Stephen J.J. Letwin, a director and chairman of the board of directors, provided advances under a secured grid promissory note to the company totalling $75,000.
This note is not convertible into securities of the company, is secured by a first-ranking security over the company's assets, bears an annual interest rate at 10 per cent and is due on Dec. 31, 2023.
About ONEnergy Inc.
ONEnergy common shares are listed on the NEX board of the TSX Venture Exchange under the symbol OEG.H.
We seek Safe Harbor.
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