EHT provides update on the RFNLP School Board Portfolio and announces related Debenture Offering
Jun 11, 2015, 09:00 ET
TORONTO, June 11, 2015 /CNW/ - Enerdynamic Hybrid Technologies Corp. (TSX-V: EHT) ("EHT" or the "Company") is pleased to announce that it has entered into an amending agreement with Reliant First Nation Limited Partnership ("RFNLP") to extend certain milestone payments required under the original Purchase and Sale Agreement. Under the amending agreement the majority of the remaining milestone payments (approximately $9 Million) will be deferred to mid-July, 2015 with a smaller milestone payment due in June 2015 (approximately $3 Million). One of EHT's largest shareholders has agreed to guarantee the June milestone payment, in the event that EHT is unable to raise at least $3 Million pursuant to the debenture offering (described below).
"The RFNLP School Board Portfolio is the largest solar commercial rooftop portfolio in Canada, spanning more than 143 school rooftops," says Paul Ghezzi, President of EHT. "The portfolio will be constructed over a period of 2 years and as each rooftop installation is connected into the Ontario electricity grid it will produce ongoing revenue backed by a 20 year Power Purchase Agreement (PPA) with the Ontario Government."
Shawn O'Reilly, President of RFNLP says, "EHT has been a strong partner in working with RFNLP to develop this premiere solar energy portfolio and we believe that EHT has the management team and technical expertise to successfully build out these 143 projects. We have amended the original Purchase and Sale Agreement with EHT to provide them with the flexibility to execute on the financing of the portfolio."
EHT has engaged Kingsdale Capital as the lead agent to syndicate up to $20 million in a debenture financing to provide the capital required for the milestone payments and to fund certain potential accretive acquisition opportunities currently in the due diligence phase. The offered debentures will have a two year term with an 18% coupon and be issued with up to 400 "bonus" common shares for each $1,000 principal amount in debentures issued. The debentures can be called by EHT at any time during their term at EHTs discretion subject to a minimum interest payment of 6 months.
Paul Ghezzi continues "We anticipate strong demand for this type of securitized financing through our lead agent and syndicated interest due to the attractive coupon and participation through the bonus share structure. We believe that the quality of the security of the portfolio in aggregate provides the opportunity for minimizing dilution to shareholders while raising the necessary capital to connect the portfolio into the Ontario electricity grid."
In addition to the construction of the School Board Portfolio, EHT is considering acquisitions in battery storage technology and modular housing technology both of which have been targeted for their complementary fit with EHT's business model and accretive potential to both Revenue and EBIT in 2015 and thereafter. There is no assurance that the acquisitions will be completed.
Details on the RFNLP School Board Portfolio:
Canada's largest solar energy rooftop portfolio backed by 20 year Power Purchase Agreements with the Ontario Government. Recurring revenue will commence immediately upon installation of the first rooftop solar panel array with the company anticipating the construction of up to 4 Megawatts installed in 2015 and 34 Megawatts in 2016 and 2017.
The portfolio falls under the FIT 3.0 Program (Feed In Tariff) and set a rate of 32.9 cents per kilowatt-hour of electricity produced, generating more than $15.0 million in annual recurring revenue and a project EBIT in the range of $11 Million per annum.
The portfolio is expected to provide up to 3,500 homes with clean electricity, offsetting approximately 13,000 tonnes of CO2 annually along with the creation of more than 150 direct skilled jobs.
The first installation will be on the rooftop of Hazel McCallion School and is anticipated to commence construction in June, 2015. The project was initially expected to commence construction in Q2, 2015 but has been delayed slightly due to a change in overall electrical design and solar panel selection. Twelve solar energy projects in total are intended to be built in 2015 and each project is in the final stages of receiving a building permit to commence construction.
Forward-Looking Information
The information in this news release, including the Company's anticipated use of proceeds, proposed solar energy installation construction, anticipated revenues and its intention to close the full Offering, includes certain information and statements that constitute forward-looking information. These forward-looking statements are based upon assumptions, principally EHT's ability to successfully complete the acquisition of the above-described feed-in-tariff contracts and commence construction of solar energy installations, the anticipated revenues to be generated by the Power Purchase Agreements and such assumptions are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may vary materially from those anticipated and indicated by these forward-looking statements. Although EHT believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct. Except as required by law, EHT disclaims any intention and assumes no obligation to update or revise any forward-looking information to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements 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.
About EnerDynamic Hybrid Technologies
EHT delivers proprietary, turn-key energy solutions which are intelligent, bankable and sustainable. EHT's energy products and solutions can be implemented immediately wherever they are needed. EHT stands above its competitors by combining a full suite of solar PV, wind and battery storage solutions, which can deliver energy 24 hours per day in both small-scale and large-scale format. EHT excels where no electrical grid exists in addition to traditional support to established electrical networks.
SOURCE Enerdynamic Hybrid Technologies Corp.
For further information: Paul Ghezzi, President, (647) 479-8605, [email protected], Company Website: www.ehthybrid.com