CALGARY, Dec. 2 /CNW/ - Greengate Power Corporation ("Greengate") is pleased to announce that is has completed the first tranche of a $10.8 million private placement financing (the "Offering"), raising gross proceeds of $5.8 million. The balance of the proceeds from the Offering will be advanced to Greengate upon the completion of certain milestones. The proceeds raised will be used to continue the development of Greengate's world-class portfolio of wind energy projects.
Greengate is pleased to announce that the Offering involved the investment by two leading cleantech sector investors: NGEN Partners ("NGEN") and SAM Private Equity ("SAM"). The Offering was led by Jacob Securities Inc. and included TD Securities Inc.
"We are pleased to welcome NGEN and SAM to our family of shareholders," said Greengate President and Chief Executive Officer, Dan Balaban. "As we prepare to begin construction of Alberta's largest wind energy project, Greengate is happy to strengthen our team and our balance sheet."
In connection with NGEN's investment, Steven E. Parry has joined Greengate's board of directors. In connection with SAM's investment, at Greengate's next shareholders' meeting to be held on December 16, 2010, management intends to recommend that the board of directors be expanded with the appointment of Rhea Hamilton.
Mr. Parry is a Managing Director of NGEN. As a professional geologist, Mr. Parry worked in the minerals industry in North America and internationally for more than 25 years in various capacities such as structuring and managing business ventures. He held positions of General Manager and VP of Business Development for the exploration subsidiary of BHP Billiton, the world's largest mining company. In addition to Greengate, Mr. Parry is currently a board member of six cleantech companies including: EnviroTower Corporation, Energy and Power Solutions Inc., Fallbrook Technologies Inc., Powerspan Corporation, Rayne Corporation and SolFocus Inc.
"Greengate has put together a very impressive suite of wind energy projects," said Mr. Parry. "NGEN is pleased to invest in the Greengate team as they move from development to construction."
Ms. Hamilton is an Investment Director of SAM. Prior to joining SAM, Ms. Hamilton worked for Royal Dutch Shell, where she was responsible for Shell Hydrogen's investments in funds and direct investments. Her career also included coordinating Investor Relations for Shell's global oil and gas exploration and production business, as well as serving on an exploration, deal-oriented team with Shell Canada Ltd.
"Greengate represents a unique opportunity to invest in a large portfolio of high quality renewable energy assets in Alberta, which is a very attractive market," said Rhea Hamilton.
About NGEN Partners
Founded in 2001, NGEN is a pioneering investor in the cleantech sector that focuses on investing in early to late stage businesses that offer economically valuable products and services that positively affect the environment. With a history in materials science, NGEN has significant expertise in alternative energy, energy efficiency, pollution abatement and green resources. NGEN is one of the most active cleantech venture investors globally, with currently over twenty portfolio companies and USD$500 million under management.
About SAM Private Equity
SAM is a market leader in the field of cleantech and sustainable private equity investing. In July 2009, Robeco's Clean Tech and Sustainability Private Equity team moved from Rotterdam, the Netherlands to Zurich, Switzerland to join SAM, a subsidiary of Robeco. The move has created synergies between SAM's sustainability research and investment capabilities in listed companies and Robeco's expertise in investing in non-listed companies in the growing cleantech sector. Now named SAM Private Equity, the team manages approximately USD$1 billion in sustainable and cleantech assets.
About Greengate Power Corporation
Greengate is a privately held renewable energy project developer based in Calgary, Alberta. Focused on the development of quality wind energy projects across Alberta with access to existing transmission, Greengate is currently developing 1,550 MW of wind energy projects on approximately 200,000 acres of private land. Greengate's vision is to be Canada's largest pure-play renewable energy producer. For more information on Greengate, please visit www.greengatepower.com.
FORWARD LOOKING STATEMENTS:
This news release contains forward-looking statements and forward-looking information (collectively "forward looking information") within the meaning of applicable securities laws. Forward-looking information typically use words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. In particular, forward looking information in this news release includes, but is not limited to: statements with respect to the completion of milestones, future financing commitments under the Offering, the use of proceeds of the Offering and the appointment of Ms. Hamilton as a director of Greengate. The forward-looking information is based on certain key expectations and assumptions made by Greengate, including expectations and assumptions concerning its projects, the state of the economy and the cleantech business; business prospects and opportunities; the current regulatory and political environment; and existing financial commitments. Although Greengate believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Greengate can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Such factors include, but are not limited to: uncertainties related to the ability to raise sufficient capital, receipt of required regulatory approvals, changes in economic conditions or financial markets, litigation, legislative or other judicial, regulatory and political competitive developments and technological or operational difficulties. The forward-looking statements contained in this news release are made as of the date hereof and Greengate undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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