/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, Aug. 30, 2012 /CNW/ - Sprott Power Corp. (TSX: SPZ) ("Sprott Power") is pleased to announce that it has completed the sale of an additional 4,500 extendible convertible unsecured subordinated debentures (the "Debentures") (TSX:SPZ.DB) at a price of $1,000 per Debenture for additional gross proceeds of $4.5 million, pursuant to the full exercise of the over-allotment option granted in connection with its bought-deal offering which closed on August 28, 2012. The exercise of the over-allotment option brings the total number of Debentures sold by Sprott Power pursuant to its bought-deal Debenture financing to 34,500 and the total gross proceeds to $34.5 million.
The net proceeds from the full exercise of the over-allotment option will be used to partially finance the proposed acquisition by Sprott Power of all of Shear Wind Inc.'s issued and outstanding shares by way of plan of arrangement (the "Acquisition").
The offering was underwritten by a syndicate of underwriters led by Canaccord Genuity Corp. and including TD Securities Inc., National Bank Financial Inc., NCP Northland Capital Partners Inc., Stifel Nicolaus Canada Inc. and Macquarie Capital Markets Canada Ltd.
This press release does not constitute an offer of securities for sale in the United States or to "U.S. persons" ("U.S. persons"), as such term is defined in Regulation S promulgated under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"). The securities being offered have not been, nor will be, registered under the U.S. Securities Act or any state securities laws, and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from such registration requirements.
About Sprott Power Corp.
Sprott Power is a publicly-traded Canadian-based company dedicated to the development, ownership and operation of renewable energy projects. Through project development efforts, acquisitions, partnerships and joint ventures, Sprott Power provides its shareholders with income and growth from the renewable power generation sector of the energy industry.
This press release contains forward-looking information within the meaning of applicable securities laws. All information and statements other than statements of historical facts contained in this press release are forward-looking information. Such statements and information may be identified by looking for words such as "about", "approximately", "may", "believes", "expects", "will", "intend", "should", "plan", "predict", "potential", "project", "anticipate", "estimate", "continue" or similar words or the negative thereof or other comparable terminology. Such forward-looking information includes, without limitation, statements with respect to: the anticipated closing of the Acquisition, cash flows, growth prospects, business strategy and plans, and objectives of or involving Sprott Power. The forward-looking information is based on certain key expectations and assumptions made by Sprott Power, including expectations and assumptions concerning satisfaction of all conditions of closing, availability of capital resources and performance of operating facilities. Although Sprott Power believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information since no assurance can be given that they will prove to be correct. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the market for the Debentures, volatility of market price for the Debentures, failure to close the Acquisition, power generation and other risks generally attributable to the business of Sprott Power. For additional information with respect to risks and uncertainties, refer to the risks listed under the headings "Risk and Uncertainties" in Sprott Power's prospectus dated August 21, 2012 and Sprott Power's management's discussion and analysis of financial results for the period ended December 31, 2011, and "Appendix B - Risk Factors" in Sprott Power's annual information form dated March 26, 2012. The forward-looking information is made as of the date of this press release and Sprott Power does not assume any obligation to update or revise it to reflect new events or circumstances, except as required by law.
SOURCE: Sprott Power Corp.
For further information:
Jeff Jenner, CA, CBV
President and Chief Executive Officer
Sprott Power Corp.
416-815-0700 ext. 264