VANCOUVER, Dec. 20, 2012 /CNW/ - Finavera Wind Energy Inc. ('Finavera Wind Energy', 'Finavera' or the
'Company') (TSX-V: FVR) is pleased to announce that after a thorough review of a
number of corporate transaction options and numerous proposals from
interested parties, Finavera's Special Committee of the Board has
recommended and approved the signing of an agreement with Pattern
Renewable Holdings Canada ULC, a subsidiary of Pattern Energy Group LP,
('Pattern') for the sale of the Company's 300 megawatt (MW) British
Columbia wind project portfolio for approximately $40 million. The
agreement provides the best value for shareholders after the review of
a number of different deal structures, assessment of execution risk and
the potential for future value.
Finavera Wind Energy CEO Jason Bak said, "This transaction is a
testament to the quality of our portfolio and is an excellent example
of the monetization of value created through our development skill
set. The transaction indicates a significant difference between our
market capitalization and our inherent value as in addition to the $40
million in proceeds payable on the projects proceeding to construction,
Finavera maintains a 10% interest in the 105 MW Cloosh Valley Wind
Project and is expecting an additional $9.3 million payment from the
project in 2013. With the cash proceeds that will be received by
Finavera from these transactions, we will be well-positioned to
continue to pursue further high growth opportunities in renewable power
Under the terms of the agreement, Pattern has agreed to refinance up to
$9 million of corporate debt, fund certain development costs going
forward and provide a further debt facility to the Company at a rate of
10%, all of which will be applied against the purchase price at closing
of the acquisition of the projects. Post-acquisition, Pattern has also
committed to development spending on the near term projects.
Approximately $11 million will be paid to Finavera upon shareholder
approval and on the completion of the acquisition of the project
companies with the balance of $40 million being proportionally payable
upon all projects proceeding into construction and obtaining
construction financing. The agreement is subject to approval from
shareholders and the TSX Venture Exchange.
Bak adds, "We are pleased to have Pattern as a partner in this
transaction given their depth of experience and financial ability.
Finavera is confident in Pattern's ability to move these projects
forward to construction and to honour the commitments that were made to
project stakeholders during their development."
Further information will be provided to shareholders in advance of a
meeting to be held by or before March 30th, 2013.
Jason Bak, CEO
About Finavera Wind Energy Inc. (www.finavera.com)
Finavera Wind Energy is a company focused on developing, constructing
and operating wind farms in North America and Ireland. Our mission is
to create and operate a diversified portfolio of wind projects while
protecting and enhancing the physical and social environment. In
British Columbia, Canada, four projects totaling 300 MW have been
awarded 25 year AAA-rated Electricity Purchase Agreements and one has
received full environmental approval and permitting for construction,
expected to begin in 2013. In Ireland, the Company has signed a
partnership agreement with SSE plc for development of the 105MW Cloosh
Valley Wind Project. Finavera is continuing to opportunistically review
prospects for growth and the enhancement of shareholder value.
Statements in this news release, other than purely historical
information, including statements relating to the Company's future
plans and objectives or expected results, constitute Forward-looking
statements. The words "would", "will", "expected" and "estimated" or
other similar words and phrases are intended to identify
forward-looking information. Forward-looking information is subject to
known and unknown risks, uncertainties and other factors that may cause
the Company's actual results, level of activity, performance or
achievements to be materially different than those expressed or implied
by such forward-looking information. Such factors include, but are not
limited to: uncertainties related to the ability to raise sufficient
capital, changes in economic conditions or financial markets,
litigation, legislative or other judicial, regulatory and political
competitive developments and technological or operational difficulties.
Consequently, actual results may vary materially from those described
in the forward-looking statements.
"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: Finavera Wind Energy Inc.
For further information:
Finavera Wind Energy
+1 (604) 288-9051
Capital West Partners
+1 (604) 718-6809