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Dakshidin Corporation (OTC: DKSC)
Untitled Document
Dakshidin Corporation (DKSC), through its wholly owned subsidiary, RESTEC International Inc., produces a new style of windmill - the RESTEC Mark 10, which pumps more water at a lower cost than other windmills. DKSC's windmills work at any water depth and any wind speed. The Company's product offerings, which include the water-pumping RESTEC Mark 10 windmill and the electricity-generating RESTEC Mark 10E wind turbine, offer cost-effective, environmentally-friendly solutions to global energy needs.
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.
A business model capitalizing on low-cost water pumping solution
DKSC has developed and is marketing a new windmill design - the RESTEC Mark 10. The results of 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.
World water cris is creates demand for DKSC's product
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.
Product enhancements expand market applications
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.
Aggressive marketing campaign
DKSC is investing in a marketing program and establishing demonstration windmills worldwide. The Company has already established distributor agreements in the US, the Caribbean, Africa, China and India and a manufacturing/distribution joint venture in China. DKSC's management team is actively promoting the Company's novel technology and products in meetings with representatives from the public and private sectors in Mexico, China, the US, and several African nations.
Manufacturing joint venture provides entry to China market
In November 2007, DKSC formed a partnership with HS Management Ltd., and HS Green Products Limited for a manufacturing/distribution joint venture in China which will build and sell RESTEC Mark 10 windmills. The joint venture, HKS Wuhu, has purchased 100 acres in the Wuhu County industrial park where it plans to build its manufacturing and distribution facility.
The Company has already developed a detailed feasibility and technical report for the manufacturing facility, hired an architectural firm to design the facility and secured a multi-million dollar financing commitment from the Bank of Communications in Wuhu County.
Increasing revenue visibility resulting from marketing program
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.
In addition, 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.
Seasoned management team
Nick Laroche, DKSC's President and CEO, has more than 30 years of senior management experience and specialized in mergers and acquisitions of service and energy companies. Mr. Laroche was the co-founder and President of the world's largest independent hotel airline reservation system, Hars Systems Inc.
Richard K. Sutz, the Chairman of RESTEC International, brings to the business more than 30 years experience in researching, developing and manufacturing renewable energy technologies. He is an internationally recognized expert in the development of low wind speed machines for water pumping, water purification and electrical generation. The Mark 10 water pumping windmill was designed and developed by Mr. Sutz.
Strong demand for renewable energy
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.

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