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American Company Spotlight

 

Dakshidin Corp. Website: Click Here

Information As Of February 22, 2008

Exchange: Pink Sheets Market Cap: 9.3 Million
Outstanding Shares: 66.7 Million 52 Low / High: $0.07 / $0.42

Price February 22, 2008: $0.14

DKSC Recent Stock Quote and News: Click Here

'Over 200 Developing Countries, with more than one billion population, have no low wind-speed windmills. Each Developing Country has a minimum need for 10,000 Windmills. This represents a potential market of millions of Windmills.'


Overview

Dakshidin Corporation, through its wholly owned subsidiary, RESTEC International Inc., produces the world's most powerful pumping windmill. The RESTEC Mark 10 water pumping windmill uses free, renewable energy to pump water from as far as 10 miles away, from depths of up to 4,000 feet, and works with wind speeds as low as 4 mph. Historically, developing countries have used submersible pumps, water wells, or centrifugal / packaged pump stations to secure clean drinking water. But problems such as the costs for fuel to operate pumps, the possibility of fuel / oil contaminating the water supply, and limitations on pumping all equate to too many people and not enough clean water for these regions.


Investment Highlights

  • Tests conducted by the Turbo-Machinery Laboratory of Texas A&M University and the Department of Agriculture in Alberta, Canada indicate that the RESTEC Mark 10 is able to pump more water at a lower cost, at any depth and in any wind speed, than any other windmill available around the world.
  • The RESTEC Mark 10 windmill features a unique rotating counterbalance system similar to that used in oil pumps which allows it to draw water from depths of up to 4,000 feet and operate at wind speeds as slow as 4 MPH. The Mark 10 enables users to tap wind energy in areas previously thought to have insufficient wind speeds for power generation.
  • DKSC has announced several significant new sales agreements which should greatly enhance the Company’s revenue visibility. In November 2007, DKSC signed a sales agreement with Pacific Power Development Corp. (PPDC) valued at approximately $48 million. PPDC is purchasing several RESTEC Mark 10E low speed wind turbines to generate utility grid electricity at two established PPDC Wind Farms in the Hunan province of China.
  • DKSC has announced a $3.6 million purchase order from its HKS Wuhu joint venture subsidiary consisting of equipment for manufacturing 20 RESTEC Mark 10 windmills and 20 RESTEC Mark 10E wind turbines.
  • Concerns about oil and gas supplies, rising fuel prices and environmental issues relating to greenhouse gas emissions are spurring considerable interest in clean energy technologies to meet current and future global electricity demand.
  • RESTEC management has more than 20 man-years of windmill experience, along with more than $5 million of Research & Development and lastly and most importantly, the commercially ready RESTEC Mark 10 Windmill system.
  • The RESTEC development is based on a business plan prepared by Mitre Corporation, a world-renowned scientific “think tank,” for the U.S. Department of Energy’s (DOE) “Energy-Related Inventions Program.
  • Dakshidin Corp. has been rated Speculative Buy with a price target of $1.22 by Beacon Equity Research Analyst, Victor Sula, PhD.  The full research report can be found here.


Executive Summary

Dakshidin Corporation through its wholly owned subsidiary RESTEC International Inc. produces the world’s most powerful pumping windmill. Over a period of several years RESTEC spent $5,000,000 on research and development. This created a completely new style of windmill; the RESTEC Mark 10.

During the second half of 2007, DKSC initiated a marketing program designed to increase the visibility of its products by installing demonstration windmills at select locations around the world. As a part of this program, the Company has also negotiated distributor agreements in the US, the Caribbean, Africa, China and India and a manufacturing/distribution joint venture in China.

In November 2007, DKSC formed a partnership with HS Management Ltd and HS Green Products Limited to create a joint venture in China, HKS Environment Energy Development Ltd. (HKS Wuhu), which will manufacture and distribute RESTEC Mark 10 windmills. HKS Wuhu has negotiated the purchase of 100 acres in the Wuhu County industrial park on which it plans to construct its manufacturing and distribution facility.

Conventional multi-blade water pumping windmills require wind speeds in excess of 15 miles per hour (24 KPH) to pump to 300 feet (100 meters). However, wind speeds of 15 MPH occur less than 20% of the time over the earth’s land surface. The RESTEC Mark 10 can operate at wind speeds as slow as 3 MPH (4.8 KPH) and pump up to 4,000 feet (1,200 meters). Wind speeds of 10 mph (16 KPH) or less occur more than 90% of the time over 90% of the earth’s surface.

Testing over the last few years of the windmill has been carried out at Texas A&M, Lethbridge, Alberta, – Department of Agriculture and in the field in Mexico, China and Arizona. It has been documented to produce more water at a lower unit cost than any other windmill tested.

Initially the windmill was created solely to draw water in greater amounts and from greater depths than previously possible. Approximately 10 years ago, research began in the area of purifying water by means of a low pressure, low temperature flash distillation system. Research in that area continues today with the addition of a third party’s work in water purification using a low pressure reverse osmosis system soon to be tested in a full scale municipal test. Both of these systems use only the power of the windmill in a total ‘off-grid’ fashion. Generation of utility-grade electricity is also being developed. Wind is free and plentiful as well as sustainable.

Earlier this year, management traveled to China to secure and increase manufacturing facilities for anticipated sales created by extensive marketing activities in Africa, China, India and the Caribbean. Initial results of the introduction of this new technology are overwhelming. The World Water Crisis has created an enormous market for the RESTEC Mark 10 windmill. The RESTEC solution does not use fossil fuels and as such is very much in line with current politically correct solutions

Sales of the windmills are being made by a Distributor Network that is growing rapidly. Research and Development is being further aided by scientists working for Kensam Echo-Tech Services Co. Ltd. (Kensam) in the province of Yunnan, China. Dakshidin acquired the controlling interest of this firm in July of this year.

Kensam has been operating in China for the past seven years in the Economic and Technical Services area within the Energy and Mineral sectors and brings significant marketing expertise as well.

Dakshidin Corporation’s goal is to be able to create complete Eco-Villages that are fully self sustaining off-grid and can be shipped anywhere in the world and set up in an expeditious fashion.

September 2007 marks the beginning of a comprehensive marketing campaign to all of the UN countries as well as the setting up of dozens of demonstration windmills worldwide. The initial orders are expected to be in the thousands for the first 12 months and increasing thereafter.


RESTEC Mark 10 Information

  • The unique features of RESTEC Windmills are:
  • Begin cost-effective operation in wind speeds of 4 MPH
  • Pump to depths of 4,000 feet
  • In addition, the Windmill has the capability to desalinate and purify diseased water, generate low-level electricity and aerate water … in any remote location, using only wind power.
  • Purification capabilities
  • RESTEC Windmills are the only types that will function in the low wind speeds prevalent in Developing Countries.  This type of Technology is funded by international aid agencies in an effort to promote economic and nutritional self-sufficiency for rural-located peoples in Developing Countries.

Conventional windmills require wind speeds of 15 to 18 MPH to pump to 300 feet. Wind speeds of 4 MPH occur 95% of the time over the earth’s surface, while wind speeds of 15 MPH occur only 20% of the time. The market for RESTEC technology is in Developing Countries where average wind speeds are less than 10 MPH and conventional water pumping windmills cannot operate.

The size of the Developing Country market can be compared to the number of conventional water-pumping windmills in the western United States before 1930.  From 1880 to 1930, with a population of 25 million and a Gross National Product (GNP) of 45% agriculture, there were 6.2 million conventional windmills and 132 companies manufacturing them.  In the 1930s, the Rural Electrification Administration electrified rural America and the conventional windmill industry collapsed. Yet today, there are some 200,000 100-year-old conventional windmills used for watering livestock in the western USA, with 40,000 still operating in Texas alone. 

Over 200 Developing Countries, with more than one billion population, have no low wind-speed windmills. Each Developing Country has a minimum need for 10,000 Windmills.  This represents a potential market of millions of Windmills. By contrast, RESTEC's worldwide sales projections through Joint Ventures total 150,000 Windmills over five years ─ (2% of the 6.2 million windmills in pre-1930 American).  A case in point is Mexico, where more than 80,000 villages with populations below 2,000 have no power source to pump water.  Water is pulled from wells in buckets and carried by women over long distances.  Developing Countries like India, China and others throughout the world multiply this number a hundred-fold.

Beyond water pumping, RESTEC will enjoy expansion into new markets as it adds the capability for:

  • Water desalination
  • Water purification
  • Water aeration
  • 12-24 DC electrical generation
  • Sufficient to power radios, TVs, refrigeration and limited village lighting
  • Later, utility grade electricity will be available.

The RESTEC development is based on a business plan prepared by Mitre Corporation, a world-renowned scientific “think tank,” for the U.S. Department of Energy’s (DOE) “Energy-Related Inventions Program. Mitre’s technical and business professionals worked under the direction of RESTEC founder Richard Sutz, while he was director of DOE’s prestigious Energy-Related Inventions Program and DOE’s Small Business Ombudsman.

The RESTEC Mark 10 exceeds the Mitre performance and design criteria.  The Mark 10 earned Richard Sutz the Department of Energy’s approval to implement the Mitre Plan to develop a high-performance windmill in the private sector.  Development and testing of RESTEC’s Mark 10 took more than 15 years to accomplish.

Key Points for The Mark 10:

  • Pumps more water at a lower cost, at any depth, in any wind speed than any other windmill in the world. 
  • The only windmill capable of cost-effective operation at wind speeds of 4 MPM. 
  • Is rugged, reliable and virtually maintenance-free
  • Has the capability to desalinate and purify water
  • Can generate electrical energy sufficient to power radios, TVs, refrigerators and limited interior and village lighting
  • Is manufacturable and serviceable in Developing Country environments
  • Is capable of being sold at a cost affordable by cash-poor Developing Countries or provided to Developing Countries by international aid agencies.

Key Performance Differences Between Conventional Windmills & The Mark 10:

  • Mark 10 begins cost-effective operation at 4 MPH, and can pump up to 4,000 feet.
  • Conventional windmills require 12-15 MPH to pump to 300 feet.
  • In wind speeds below 10 MPH, conventional windmills will not work.
  • 12 to 15 MPH winds occur 20% of the time over the earth’s surface.
  • 4 MPH winds occur 90% of the time over 90% of the earth’s
    surface.

DKSC is currently marketing its RESTEC Mark 10 water-pumping windmills and Mark 10E wind turbines. In addition, the Company is working with two development teams to increase the functionality of the windmill product lines and address new markets:

The first team has developed a system of reverse osmosis using the windmill as both power source and source for water. The intent is to tap seawater from coastlines around the world and purify this seawater into drinkable water off-grid;

The second team is adapting an existing flash distillation technology for water purification using the RESTEC Mark 10 windmill. Through this technology, the Company believes it can make fresh water available in abundant quantities for human and animal consumption and for irrigation.

DKSC is currently marketing RESTEC Mark 10 water-pumping windmills and Mark 10E wind turbines. The Company expects to achieve the following milestones in 2008:

  • Generation of utility grade electricity - 2nd quarter 2008
  • Flash distillation of water - 2nd quarter 2008
  • Reverse osmosis - 3rd quarter 2008

Industry Drivers

Around the world and particularly in developing countries, there is a dire need for safe water to fulfill basic human self-sufficiency needs. In most cases, the problem is not a lack of available water but rather the inability to obtain it cost-effectively. The World Health Organization estimated in 2003 that approximately 1.1 billion people had no access to safe water. Global population and economic growth, urbanization and rising standards of living in developing countries are creating demand for wind energy products that can pump water inexpensively. According to McIlvaine Company, world pump revenues are expected to reach $36 billion by 2010, with power and water applications being the main growth drivers.

Around the world but especially in developing countries, there is a dire need for clean drinking water. Of all water on earth, 97.5% is salt water, and the remaining 2.5% is fresh water. Some 70% of the available fresh water supply is frozen in the polar icecaps while the remaining 30% is mostly present as soil moisture or located in underground aquifers. It is estimated that less than 1% of the world’s fresh water (or about 0.007% of all water on earth) is readily accessible for direct human use.

Global energy consumption is strongly influenced by economic and population growth in developing countries. The US Department of Energy predicts world energy consumption will increase 71% between 2005 and 2030. Concerns about oil and gas shortages, rising fuel prices and environmental issues relating to greenhouse gas emissions are creating strong interest in clean energy technologies for power generation. Benefiting from strong government support and multi-billion dollar R&D investments, clean energy’s share of the global energy market is expected to increase significantly over the next decade.

Wind power, for example, has emerged as one of the least expensive, most easily deployed energy sources. According to the Global Wind Energy Council, the cumulative capacity of wind energy installations will reach 149.5 GW over the next decade, or more than double current installed capacity. According to Clean Edge research, wind energy industry revenues will grow from $11.8 billion in 2005 to $51.1 billion by 2015.

Wind energy offers a clean, efficient alternative to energy produced from coal, oil or natural gas. Electricity is produced at low variable costs and wind energy generating facilities don’t produce carbon dioxide emissions. Despite these advantages, wind turbines presently provide less than 1% of the world’s energy.


Recent News and Press Releases

• Restec's Inventor, Richard Sutz, & Nick Laroche Travel to China for Production of the Restec Mark 10E Wind Turbine
Marketwire (Mon, Feb 11)

• Dakshidin Announces Revenue Forecast for Wuhu Green Project in China
Marketwire (Tue, Jan 15)

• Dakshidin Corp. Rated 'Speculative Buy,' Target Price $1.22 by Beacon Equity Research
PR Newswire (Tue, Jan 15)

• Dakshidin to Receive $2 Million Investment From HKS (Wuhu) Environment Energy Development Ltd.
Marketwire (Wed, Jan 9)

• Dakshidin & JCT Limited Featured in India's Largest Financial Daily Publication
Marketwire (Thu, Jan 3)

• Dakshidin Signs MOU With Indian Conglomerate, JCT Limited, Enters Multi-Billion Dollar Indian Market
Marketwire (Fri, Dec 21)

• Dakshidin & Partners Deposit $500,000 USD Towards Financing Arrangements
Marketwire (Thu, Dec 20)

• Dakshidin Grants Exclusive Rights to Cervantes Windmill Corporation in Caribbean
Marketwire (Mon, Dec 17)

• Dakshidin's Joint Venture Partner Settles Financing Arrangements
Marketwire (Fri, Dec 14)

• Dakshidin and Joint Venture Partners Hire Architectural Firm to Move Forward With Green Project
Marketwire (Thu, Dec 13)


Management

Nick Laroche - President & CEO

Nick Laroche has over thirty years of Senior Management experience specializing in mergers and acquisitions of private and public companies. Mr. Laroche was the Co founder and President of the Worlds largest independent hotel airline reservation system, Hars Systems Inc. and sold out in 1994.

Mr. Laroche has worked with the energy sector for several years in the development of related technologies. During that time he held the position of Senior Vice President of a major oil and gas well servicing business as well as the position of Director and Officer of East Coast Energy, an offshore oil exploration company.

Mr. Laroche currently holds the position of Director in several companies, as well as the position of President with a working interest in the China energy sector.

Richard Sutz - Chairman

Richard K. Sutz, Chairman of RESTEC International Inc., brings more than 30 years of experience in the research, development and manufacture of renewable energy technologies. He is an internationally acknowledged expert in the development of low wind speed machines for water pumping, water purification and electrical generation.

The Mark 10 High Performance Water Pumping windmill, founded and developed by Mr. Sutz, is the result of more than $5 million of R&D.

Mr. Sutz’s background and experience span executive roles in both the private and public sector. He began his business career as Director for Europe and the Middle East for Grumman Aircraft where he was responsible for marketing military and civilian aircraft. He later moved to Scottsdale, Arizona and began his entrepreneurial career focused in the field of energy-related technologies and educational software designed to teach enhanced reading skills.

In the late 1970’s he was appointed the Deputy Director of the Arizona Energy Office, with joint responsibility for Arizona Energy Conservation Programs. He later joined the U.S. Department of Energy as Director of the Energy Related Inventions; with the responsibility to evaluate and fund promising energy related technologies. During this period, he directed the US Department of Energy research that identified the need, in developing countries, for water pumping windmill technology that could operate, cost effectively, in low wind speeds and could pump water from great depths and generate electricity in remote located areas far from any utility grid.

Mr. Sutz left the government to lead a private sector team that developed the Mark 10 High Performance Windmill. The Mark 10 is currently in production in China. Plans are underway for Mark 10 production in pother countries as part of a world-wide commercialization plan.

Earlier in his career, he served as a Project Officer with the U.S. Navy Bureau of Aeronautics. He invented the key component of fighter pilot’s oxygen breathing systems that prevented fatal accidents caused by hypoxia (lack of oxygen at high altitudes). His other major development was to install the first rocket-powered ejection seat for US Navy fighter aircraft, enabling pilots to eject from the runway on landing or takeoff. For his efforts, as a young US Navy officer, he was awarded a rarely presented Letter of Commendation from the Chief of Naval Operations.

Mr. Sutz has a Bachelor of Science Degree in Metallurgical Engineering, with a minor in Mechanical Engineering from the Illinois Institute of Technology, and a graduate degree in International Business and Finance from IMD, Lausanne, Switzerland.
 


Contacts

Executive Office:

181 University Avenue Suite 210
Toronto, Ontario M5H 3M7 CANADA
Email: ir@dakshidin.com
Phone: 1.866.888.1319
Fax: (416)352.5112

Corporate Office:

823 South Sixth Street Suite 100
Las Vegas, Nevada 89101 USA
Phone: (647) 477.8440


FORWARD LOOKING STATEMENTS

This report includes forward-looking statements that reflect Dakshidin Corp. current expectations about its future results, performance, prospects and opportunities. Dakshidin Corp. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause Dakshidin Corp.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.


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