Nesscap Energy Inc. Reports Fiscal 2015 Year End Results for Ultracapacitor Products

SEOUL, SOUTH KOREA--(Marketwired - April 21, 2016) - Nesscap Energy Inc. (the "Company" or "Nesscap") (TSX VENTURE:NCE), a global leader in research, development and manufacturing of ultracapacitor products, reported its financial results for the year ended December 31, 2015.

Revenue for the year ended December 31, 2015 was USD 17.2 million compared to USD 21.3 million in fiscal 2014, representing a decrease of 19%. The decrease is primarily due to significant devaluation of the euro and decreased demand from customers in the industrial and transportation sectors.

Revenue for the three-month period ended December 31, 2015 decreased 13% to USD 4.5 million compared to USD 5.1 million for the same period one year ago. The decrease is primarily due to significant devaluation of the euro and decreased demand from customers in the renewable energy and transportation sectors. For the three months ended December 31, 2015, the gross profit margin was 16.8% compared to 16.1% for the same period in the previous year.

Net loss for the year was USD 4.2 million or $0.02 per share compared to a similar net loss of USD 4.1 million or $0.02 per share in fiscal 2014. The small increase in net loss resulted mainly from a decrease in revenue and gross profit margin.

At December 31, 2015, the Company had cash and cash equivalents equal to USD 3.2 million and working capital of USD 2.0 million. The decrease in working capital form last year's position of USD 12.6 million is mainly due to the elimination of short-term financial instruments brought about by the return of USD 15 million escrow funds to Open Joint Stock Company RUSNANO. This impact was mitigated by a significant reduction in current liabilities brought about by the conversion to equity of notes held by I2BF Energy Ltd. ("I2BF") and Arbat Capital Group Ltd ("Arbat Capital").

"Though 2015 was down somewhat from our record year in 2014, we remain optimistic about the growth of the market and demand for Nesscap's products," said Jim Zuidema, Acting Chief Executive Officer of Nesscap. "In 2016, we are focused on delivering products with enhanced features and performance to better meet our customers' needs. We recently launched the new XP™ product line specifically for applications that operate in environments of high temperature and humidity. Our objectives over the coming quarters are to continue bringing new products to market, expand production capacity in select areas, and continue to enhance our financial position."

On March 27, 2015, Arbat Capital agreed to provide bridge financing to the Company in an amount of up to USD 1.5 million with a maturity date of April 1, 2016. An initial tranche of USD 750 thousand was provided on March 31, 2015. On April 9, 2015, the Company issued 3,129,250 bonus common shares to Arbat Capital which is equivalent to 20% of the initial tranche at a deemed price of CAD 0.06 per share.

On June 30, 2015, USD 750 thousand was provided as a second tranche and the Company issued 3,129,250 bonus common shares to Arbat Capital which is equivalent to 20% of the second tranche at a deemed price of CAD 0.06 per share.

On December 30, 2015, the Company issued a grid promissory note to Arbat Capital in an amount of up to USD 3 million. An initial draw of USD 1 million was provided on December 30, 2015 and the Company issued 4,247,692 bonus common shares to Arbat Capital which is equivalent to 20% of the initial draw at a deemed price of CAD 0.065 per share.

On March 17, 2016, the maturity dates of a convertible note of USD 1 million and a grid promissory note of USD 1 million issued to I2BF were extended to June 30, 2017. Also the maturity date of grid promissory notes of USD 1.5 million issued to Arbat Capital was extended to June 30, 2017.

On April 19, 2016, the Company received conditional approval from the TSX Venture Exchange, in connection with an offering of an aggregate of 287,333,271 transferable rights to subscribe for an aggregate of 287,333,271 common shares of the Company at an exercise price of CAD 0.01 for each common share. The rights offering will be subject to the normal terms and conditions for a transaction of this nature. In connection with this rights offering, the Company has received confirmation from Arbat Capital and I2BF that they will exercise rights and acquire common shares for an aggregate amount of up to USD 2 million, comprised of the rights initially issued to them as shareholders and the additional subscription rights made available to shareholders under the terms of the rights offering.

Nesscap continues to focus on growing revenue and profit margin through continuous development and marketing of highly performing, technologically advanced, cost competitive ultracapacitor products for customers in a steadily growing market. Key areas of focus for the Company include the renewable energy, industrial & consumer, automotive, heavy-hybrid transportation, and voltage stabilization segments. To realize its business objectives, the Company plans to raise funds, through both equity and debt financings, and use the proceeds to increase working capital and make investments to increase production capacity, accelerate product and technology development, and extend sales coverage. Nesscap is well positioned to build on the solid foundation that it has established to accelerate growth over the coming years in the exciting market for new power delivery solutions.

The Company is hosting its annual and general meeting of shareholders on Thursday, June 16, 2016, at 10:00 a.m. (Toronto time) at the offices of Miller Thomson LLP located at Scotia Plaza, 40 King Street West, Suite 3100, Toronto, Ontario M5H 3S1.

The financial statements for fiscal 2015 and related MD&A have been filed on SEDAR and can be found at www.sedar.com.

About Nesscap

Since its inception in 1999, Nesscap Energy Inc. has become an award winning global leader in technology innovation and product development of ultracapacitors. Attributes of the ultracapacitor allow for the technology to be used in applications where power, life cycle requirements, or environmental conditions limit the suitability of batteries or capacitors. Nesscap products are available in both cells and modules and are used to enhance the performance of modern applications ranging from portable electronic devices to high performance windmills and high-tech 'green' cars. Nesscap features the widest array of standard commercial products in the market from 3 farads to 6200 farads with industry recognized alternative organic electrolytes. Customers of the Company are active in the transportation, renewable energy, industrial, and consumer markets. Technical and sales information can be found at www.nesscap.com.

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) has in any way approved or disapproved of the contents of this press release.

Forward-Looking Statements

Included in this news release are matters that constitute "forward-looking" information within the meaning of Canadian securities law. Such forward-looking statements may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may" or words of a similar nature. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include among others, regulatory risks, risk inherent in foreign operations, commodity prices and competition. Most of these factors are outside the control of the Company. All subsequent forward-looking statements attributable to the Company or its agents are expressly qualified in their entirety by these cautionary comments. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.