Orbite announces HPA update and Second Quarter 2016 results

Orbite Technologies Inc. yesterday filed its financial statements for the second quarter ended June 30th, 2016. The company reported a loss before net finance expense and taxes of $1.8 million for the quarter, a decrease from a loss of $3.5 million for the comparable quarter in the prior year, attributable mainly to lower general and administrative expenses, as well as an increase in other income of $1.0 million.

As at June 30th, 2016, the company had aggregate cash and short-term investments balance of $5.6 million, and positive working capital (current assets less current liabilities) of $6.4 million. Subsequent to June 30th, 2016, the Company drew the remaining $2.1 million on the $4.9 million 2016 Investissement Quebec ("IQ") bridge loan. As a result, the company has, on a pro-forma basis, cash and short-term investments of $7.7 million.

All dollar amounts are in Canadian dollars unless stated otherwise.

Highlights:

Corporate & Financing: During the quarter, the company completed financings for an aggregate amount of $16 million. The funds raised enabled the company to award the contracts towards the completion of Orbite's High Purity Alumina (HPA) plant and reaccelerate construction as described below.

HPA Plant Construction: A major part is complete; the rest of installation and instrumentation work is proceeding as planned.

Commissioning & Start-up: Commissioning and start-up activities were completed successfully during the quarter.

"Following the completion of our financing with Investissement Quebec, we were able to reaccelerate construction work at our HPA plant," stated Glenn Kelly, CEO of Orbite. "Work is progressing on schedule and on budget to meet the timeline communicated to shareholders previously, while commissioning activities continue to meet expectations. Consequently, we reiterate our expectation of commencing commercial production in Q3 of this year."