BlueScout Technologies Files for Chapter 7

CHANTILLY, VA, Jan. 24, 2013 /CNW/ - BlueScout Technologies Ltd. (TSXV: SCT) the "Company", providers of the BlueScout OCS-210 for optimized wind energy generation, announces today that it has filed a voluntary petition under Chapter 7 of the United States Bankruptcy Code.

As previously announced on January 3, 2013, the Company's viability and ability to continue as a going concern was dependent on securing additional capital. The Company had been actively seeking to raise additional capital through debt, equity or other capital raising efforts while also considering other strategic alternatives. The Company was unsuccessful in raising such additional capital or completing a strategic transaction, in large part due to ongoing legal matters. To date, even though the Company has not paid out any damages relative to legal disputes, the increasing cost of defending against multiple legal actions by Philip Rogers and Alisa Rogers, the former founders (and, in the case of Mr. Rogers, the former CEO) of the Company and their related entities, Optical Air Data Systems LLC and Falcon Fifty LLC, has severely impacted the Company's cash flow and operations.

Accordingly, after multiple reviews of the various alternatives available to the Company, the board of directors concluded that voluntarily entering the Chapter 7 process is the best available option to the Company and its stakeholders. The bankruptcy filing was made in The United States Bankruptcy Court for the District of Delaware.

The Company also announces that Susan Nickey, Martin Crotty and David Garman have resigned as directors of the Company, and John Green has resigned as the Chief Financial Officer of the Company.

About BlueScout
BlueScout Technologies (TSXV: SCT) increases energy production and decreases operating costs by applying groundbreaking microgeographical wind flow sensing to turbine control systems that increases the effectiveness and availability of wind turbines. BlueScout combines precise, optically based wind forecasting with advanced predictive control architectures to ready the turbine for the imminent wind inflow changes - optimizing energy production and reducing the harmful effects of wind turbulence on the turbine. With extensive operating data on multiple wind turbine models, BlueScout is the leading, value-added innovator in wind turbine performance and optimization.

Forward-Looking Information
This news release includes certain forward-looking statements within the meaning of Canadian securities laws. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed in such forward-looking statements. Forward-looking statements in this news release, include, but are not limited to, economic performance and future plans and objectives of BlueScout Technologies. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although BlueScout believes that the assumptions and factors used in making the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed timeframes or at all. BlueScout Technologies disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE BlueScout Technologies, Inc.

Copyright 2013 Canada NewsWire

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