Develops, manufactures and distributes thermoelectric power generation equipment (thermoelectrics involve the conversion of heat energy to DC electric power) for use in remote locations. Also manufactures air heaters used in military vehicles; and develops commercially viable fuel cells to produce electric power.

In August 1999, a purchase order worth over $1,300,000 was received for the second segment of the company's solid oxide fuel cell project with Delphi Automotive Systems Corp., the world's largest supplier of automotive components, systems and modules.

In September 1999, the U.S. Army exercised its option to purchase an additional 1,863 Global Model A20 armoured vehicle personnel compartment heaters for over Cdn$8,000,000. Delivery would commence when the prior order for 2,137 units was completed in late 1999. The company also had a contract to develop additional applications for the heaters and design new versions for other military heating applications.

In January 2000, the company announced plans to build the first solid oxide fuel cell manufacturing plant in Canada. Commercial production was expected to commence in the fall. Initially, the company would produce fuel cells for Delphi and prototypes for power generation equipment used in remote locations. Expected production was up to 10 megawatts, or about 5,000 systems, within a year.

For the nine months ended Dec. 31, 1999, net loss was $572,044 or 3¢ per share compared with restated net income of $899,960 or 4¢ per share for the corresponding year-earlier period. Operating revenue rose 51% to $14,153,563 from a restated $9,358,530.

The company attributed the revenue growth to higher sales of heaters to the U.S. Army and to the commencement of thermoelectric generator shipments to the Gas Authority of India.

HISTORICAL SUMMARY:

[1] At July 30, 1999.

Series 1 Preferred - Entitled to cumulative dividends at a rate of 10% per share per annum. Redeemable. Convertible into common stock on the basis of four common shares for each preferred share. Non-voting.

Common - One vote per share.

Options - At Oct. 8, 1998, options were outstanding to purchase 742,000 common shares at prices ranging from 28¢ to $1.15 per share expiring between Dec. 12, 2001 and June 2, 2003.

Warrants - At Oct. 8, 1998, warrants were outstanding to purchase 3,333,333 common shares at $1.05 per share until Apr. 17, 1999 and 324,633 common shares at 90¢ per share until Oct. 17, 1999.

On Nov. 22, 1999, the company announced the final closing of a previously announced private placement of an additional 1,800,000 special warrants at a price of $8.50 each.

On July 23, 1999, the company redeemed all outstanding series 1 preferred shares for US$2.16 per share plus accrued and unpaid interest.

In April 1998, the company issued 3,333,333 units (one common share and one warrant) at 90¢ per unit for net proceeds of approximately $2,700,000. Each warrant entitles the holder to buy one common share at $1.05 per share until Apr. 17, 1999.

In fiscal 1998, the company issued 190,445 common shares on conversion of a debenture, 166,000 on conversion of preferred shares, 97,639 pursuant to a bonus plan, 206,000 on exercise of options and 85,000 on exercise of warrants.

Pfd ser 1 cum red cv Rate US$0.216 per sh p.a. s/a