Encore Clean Energy may seek private placements in coming year

By Sheri Kasprzak

New York, Dec. 16 - Encore Clean Energy Inc. said it may head to the PIPE market to fund its working capital needs in the coming year.

"We anticipate that we will require financing in the amount of $2.5 million in order to fund our plan of operation over the next 12 months," said a form 10-QSB the company filed with the Securities and Exchange Commission. "In addition to financing our development plans for the Encore products, we anticipate that we will continue to require additional financing to fund the Ignite business, which continues to consume more cash in operating activities than is generated.

"We plan to pursue additional bank debt and equity financings through private placements of our common stock or common stock and share purchase warrants in order to raise the funds necessary to enable us to pursue our plan of operation for the next 12 months."

Ignite Communications Inc. is the company's mass-marketing subsidiary.

Currently, the report said, Encore does not have any particular plans and has not entered into any particular agreements for a financing. If an equity offering is pursued, the report said, Encore's shareholders may suffer dilution.

For the quarter ended Sept. 30, the company reported a net loss of $1,398,808 compared with a net loss of $821,698 for the same quarter in 2004.

"If we are unable to meet our current obligations, we may be force to significantly scale back our business operations with the result that our ability to earn revenues and achieve profitability may be adversely affected," the report said.

Based in Vancouver, B.C., Encore develops products that generate electricity without using fossil fuels.

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