Renewable Energy Developers Inc. Completes Internalization of Management

TORONTO, July 31, 2013 /CNW/ - Renewable Energy Developers Inc. (TSX: RDZ) (TSX: RDZ.DB) ("ReD" or the "Company"), a developer, owner and operator of renewable energy projects, today announced it has successfully completed its previously announced transition to internal management.

Upon termination of its management services agreement (the "MSA") with Sprott Power Consulting Limited Partnership ("Sprott Consulting") on July 31, 2013, the Company issued 7,504,272 common shares at a price of $1.05 per share to Sprott Consulting and to certain employees and management of the Company.

As part of this transition, the Company appointed Mr. Andrew Ingram to the position of Chief Financial Officer of ReD.  Mr. Ingram is a Chartered Professional Accountant who has over eight years' experience in the independent power sector, primarily with Algonquin Power & Utilities Corp.  Prior to that, Mr. Ingram spent over eleven years with PricewaterhouseCoopers LLP working in their business recovery group on various corporate restructuring and insolvency cases.  Prior to his appointment as CFO, Mr. Ingram served as Executive Vice President of the Company

The Company also announced that key employees needed to advance ReD's contracted development projects will continue with the Company as it moves to complete the arrangement with Capstone Infrastructure Corporation ("Capstone") whereby Capstone will acquire all the outstanding shares of ReD by way of a plan of arrangement. Mr. Jeff Jenner, President and CEO of the ReD, will assist the Corporation through the integration period with Capstone.

"We are pleased to have completed the transition to internal management as we can now focus on enhancing shareholder value with the development of our advanced stage projects and the completion of the arrangement with Capstone," said John Varghese, Chairman of the Corporation.

About Renewable Energy Developers Inc. 
ReD is dedicated to the development, ownership and operation of renewable energy projects. Through project development efforts, acquisitions, partnerships and joint ventures, ReD provides its shareholders with income and growth from the renewable power generation sector of the energy industry.  On July 3, 2013 the Company announced it had entered into a definitive agreement with Capstone (TSX: CSE; CSE.PR.A; CSE.DB.A) whereby Capstone will acquire all the outstanding shares of ReD by way of a plan of arrangement, which will result in a larger infrastructure company with power generation facilities across Canada totaling approximately net 465 megawatts of installed capacity, an attractive pipeline of contracted development opportunities in Canada representing net 79 MW of capacity, and international investments in regulated water and district heating businesses.

Forward-Looking Statements
Certain information contained in this press release may constitute "forward-looking information" which reflects the current expectations of ReD. This information reflects ReD's current beliefs with respect to future events and is based on information currently available to management.  Forward-looking information involves significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking information including the risks listed under the heading "Risk Factors" in the Company's Revised Annual Information Form dated April 2, 2013. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information contained in this release. Although forward-looking information contained in this release is based upon what ReD believes to be reasonable   assumptions, management cannot assure investors that actual results, performance or achievements will be consistent with this forward-looking information. The forward-looking information is made as of the date of this release and ReD does not assume any obligation to update or revise it to reflect new events or circumstances, except as required by law.

SOURCE: Renewable Energy Developers Inc.