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Synex International Inc
Symbol SXI
Shares Issued 38,478,083
Close 2019-05-09 C$ 0.28
Recent Sedar Documents

Synex International loses $505,724 in Q3

2019-05-09 20:19 ET - News Release

Mr. Daniel Russell reports

THIRD QUARTER OF FISCAL 2019

For the nine months ended March 31, 2019 (Q3 2019), Synex International Inc.'s revenue increased to $2,303,999 from $2,303,380 in the corresponding period in fiscal 2018 (Q3 2018). Electricity generation for the nine months ended March 31, 2019, was below average at the hydro plants due to unseasonably low temperatures which reduced the hydrology. Electricity sales for Q3 2019 were $164,710 lower than in Q3 2018. Revenue from engineering services for Q3 2019 were $56,700 lower than in Q3 2018 due to decreased consulting activity for the private hydropower industry in British Columbia.

The net loss attributable to shareholders of the company for Q3 2019 was $505,724 as compared with the net loss of $24,815 for Q3 2018. The increase in net loss for Q3 2019 as compared with the net loss for Q3 2018 is primarily due to: (i) lower electricity sales; (ii) lower engineering consulting revenue; and (iii) the non-recurring expense of approximately $459,219 incurred in connection with a legal proceeding that was ultimately resolved pursuant to an order of the Supreme Court of British Columbia released on Jan. 11, 2019, which affirmed the properly constituted board of the company. Net loss per share in Q3 2019 was one cent as compared with a net loss per share of nil in Q3 2018.

The capital expenditures in respect of the development of run-of-river hydro projects in British Columbia for Q3 2019 was $44,988 as compared with $436,727 for Q3 2018. On Feb. 14, 2019, the company received notice that BC Hydro had suspended the standing offer program indefinitely, which impacted the company's proposed 4.3-megawatt Newcastle Creek project and five-megawatt McKelvie Creek project.

At March 31, 2019, the company had a cash balance of $642,871 as compared with $1,131,414 at June 30, 2018. The total loan principal outstanding to the Canadian Western Bank was $14,051,138 at March 31, 2019, as compared with $14,539,990 at June 30, 2018. Loans payable at March 31, 2019, included a current portion of $992,841 and a non-current portion of $13,058,297.

The company is a run-of-river hydro developer, operator and engineering firm. The company wholly owns or has a proportionate interest in a net total 12 megawatts of operating facilities in British Columbia, and a Vancouver Island grid connection and utility carrying on business as Kyuquot Power Ltd. The company also has 9.4 megawatts of construction-ready run-of-river projects, and applications and land tenures on another 24 potential hydroelectric sites totalling over 150 megawatts of installed capacity in British Columbia.

Advanced notice policy

Separately, the company announces the approval by its board of directors of an advance notice policy, which, among other things, includes a provision that requires advance notice to the company in certain circumstances where nominations of persons for election to the board of directors are made by shareholders of the company.

Among other things, the policy fixes a deadline by which holders of record of common shares of the company must submit director nominations to the corporate secretary of the company prior to any annual or special meeting of shareholders at which directors are to be elected and sets forth the specific information that a shareholder must include in the written notice to the corporate secretary of the company for an effective nomination to occur. No person will be eligible for election as a director of the company unless nominated in accordance with the provisions of the policy.

In the case of an annual meeting of shareholders, notice to the company must be made not less than 30 nor more than 65 days prior to the date of the annual meeting, provided, however, that in the event that the annual meeting is to be held on a date that is less than 50 days after the date on which the first public announcement of the date of the annual meeting was made, notice may be made not later than the close of business on the 10th day following such public announcement.

In the case of a special meeting of shareholders (which is not also an annual meeting), notice to the company must be made not later than the close of business on the 15th day following the day on which the first public announcement of the date of the special meeting was made.

The policy is effective and in full force and effect as of the date it was approved by the company's board of directors. In accordance with the terms of the policy, the policy will be put to shareholders of the company for approval at the next annual general meeting (AGM), and, if the policy is not confirmed at the meeting by ordinary resolution of the shareholders, the policy will terminate and be of no further force and effect following the termination of the AGM.

The full text of the policy will be available via SEDAR.

We seek Safe Harbor.

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