Balance Sheet Improvement
May 4, 2011, Scottsdale, Arizona
Press Release Source: WindGen Energy, Inc. (OTCBB:WGEI) (OTCQB:WGEI)
WindGen Energy, Inc., a Utah corporation (the “Company”), during 2010 completed a series of debt reduction transactions to significantly improve its financial position, setting the stage for the anticipated production of the Company’s revolutionary small wind turbine systems.
On June 24, 2010, WindGen Energy, Inc completed an agreement with MicroCor, Inc., a Utah corporation, Wescor, Inc. a Utah corporation, and Chi Lin Technology Inc, a Taiwan corporation, whereby resulting in WindGen’s percentage of ownership of MicroCor being reduced from approximately 57% to 49% thereby deconsolidating MicroCor, Inc. from WindGen for financial statement reporting purposes. The effect of the transaction reduced WindGen’s total liabilities by $585,899. Subsequently WindGen converted two creditors to Shares of the Company’s restricted common stock reducing WindGen’s total liabilities by $41,423. In a third transaction, WindGen Energy completed the conversion of a portion of outstanding Series A Cumulative Preferred shares to the Company’s restricted common shares and $15,000 is cash thereby reducing WindGen’s total liabilities by $49,650. The net effect of these transactions is to significantly strengthen the Company’s balance sheet by reducing existing outstanding liabilities at December 31, 2010 by $676,972 a reduction of approximately 84%. Total outstanding liabilities at December 31, 2010 and 2009 respectively were $170,907 and $832,639. The Company’s December 31, 2010 Form 10K is available on line.
WindGen Energy, Inc. is well positioned to execute on the tremendous market opportunity in the fast growing small wind sector of the alternative energy industry. The Company believes this reduction in Debt could also enhance the Company’s ability to seek further debt or equity financing. Discussions are currently ongoing with several sources of new funding for the Company but at present no letters of intent have been entered into. The proceeds from the next round of funding will be utilized by the company to further develop and expand its Distribution network as well begin seeking distributors in Canada and the UK. With a stronger less encumbered balance sheet now allow the Company to the ability to better market its business plan.
Being an exclusive Licensee of Wind Sail Receptor Inc’s small Wind Turbine Technology Systems in the United States, Canada and The U.K. provides WindGen with a significant advantage against the small wind industry competition in that WindGen did not incur any R&D cost to develop the unique technology developed by Wind Sail Receptor.
The Company will introduce its six foot blade diameter small wind turbine system at the American Wind Energy Association (AWEA) WINDPOWER 2011 Conference and Exhibition to be held at the Anaheim Convention Center in Anaheim, CA, May 22/25. (www.awea.org) This is the largest annual wind industry trade show in the United States and offers an excellent platform to introduce WindGen’s products to the alternative/renewable energy market place. The attendance at this show is projected to be 25/30,000 attendees.
The Company is currently developing its initial distribution network in the Central Wind Belt and Western part of the United States. Establishing this net work will result in not only ongoing revenues for the Company but also initial revenues resulting from the fee a new distributor will pay to the Company for an exclusive territory as the purchase of one or more small wind turbines for use by the distributor as a demonstration unit. The Company projects that it will recruit a minimum of 100 distributors during 2011. The initial distributors being sought are well established existing dealers or distributors currently selling small wind turbines made by the competition. In addition WindGen is seeking well established existing national name brand farm implement dealers. Recruiting well established distributors with existing brands and relationships in their community will provide Windgen with a much stronger foothold in conjunctions with he launch of its small wind turbine products.
However without developing additional working capital the company may fall short of this projection. Potential for additional revenue could possibly develop through Community Wind Projects, Light Industrial Power Purchase Agreements, distribution of the Company’s three foot blade diameter wind turbine unit through an international retail chain as well as off shore platforms associated with the oil and gas industry. At present the company has not entered into any letters of intent with any entity associated with these potential sources of revenue.
Certain of the statements made in this press release regarding our business constitute forward-looking statements as contemplated under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those anticipated as a result of various risks and uncertainties. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. The Company undertakes no obligation to publish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law. For a brief discussion of the risks and uncertainties that may affect WindGen Energy Inc.’s business and future operating results, please refer to Form 10-K for the year ended December 31, 2010, which is on file with the SEC.
About WindGen Energy, Inc.
WindGen Energy, Inc., OTC Bulletin Board: WGEI is focused on manufacturing and distributing innovative products for renewable energy production. WindGen provides the most efficient and economical wind turbines available for the small wind power energy producing segment. WindGen is the exclusive licensee for the revolutionary Wind Sail Receptor, Inc. turbine and power generation systems with a rotor diameter of fifteen (15) feet or less which covers the United States, Canada, Ireland, and the United Kingdom. The License is nonexclusive for the rest of the World except for Latin America.
For Further information or a copy of the Company’s current Private Placement Memorandum please contact the Company at info@windgenenergy.com or Black Arrow Communications, blackarrowcomms@yahoo.com.
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