VANCOUVER, Oct. 1, 2012 /CNW/ - Finavera Wind Energy Inc. ('Finavera Wind Energy' or the 'Company') (TSX-V: FVR) announces that Capital West Partners ('Capital West') has been appointed as financial advisors to respond to inquiries and to review offers received for the Company. Finavera is currently in discussion with three potential bidders for the Company and its assets. Capital West is an experienced merger and acquisitions advisor that has experience with renewable energy assets based in BC, Canada. Concurrent with Finavera's decision to explore a corporate transaction, the transaction announced on July 26, 2012 with Innergex Renewable Energy Inc., has been terminated.
Finavera Wind Energy CEO Jason Bak said, "Ever since the award of our Electricity Purchase Agreements from B.C. Hydro in 2010, where we were the largest winner of wind power contracts in British Columbia's history, we have focused on finding the optimal partner to unlock the value of the $2.5 Billion in contracted payments to Finavera Wind Energy. During this time we have dealt with adverse market conditions and short term hedge funds that have punitively sold stock against the interest of the long term shareholder. This has resulted in a significant difference between our market capitalization and our inherent value. We are optimistic that a corporate transaction will provide a solution where shareholders are part of a stronger platform to access the value of these assets and realize upside from the current Company capitalization."
Such a corporate transaction should immediately allow for completion of the following milestones:
- Financial close for the 47 MW Tumbler Wind Energy Project,
- Final studies relating to the issue of the Wildmare Wind Energy Project's Environmental Assessment Certificate,
- The commencement of the Meikle Wind Energy Project's environmental review process, and
- The repayment or refinancing of the Company's existing debt obligations.
The three potential bidders for the Company have completed significant due diligence including review of the Company's data room, site visits to a number of project locations, confirmation of turbine supply pricing and construction costs and financial returns from the projects. Finavera intends to move expeditiously to explore transaction proposals and consummate a transaction in the near term.
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: