Finavera Wind Energy Inc. has finalized a $28 million purchase and sale agreement with Pattern Renewable Holdings Canada ULC, a subsidiary of Pattern Energy Group LP, for Finavera's 47 MW Tumbler Ridge and 117 MW Meikle wind energy projects.
Under the terms of the agreement, up to $9.3 million will be paid to Finavera upon shareholder approval of the transaction and the completion of Pattern's acquisition of the project companies.
The balance of the $28 million will be payable on a milestone basis as the projects proceed to construction financing. Pattern has also agreed to provide a credit facility to the Finavera at a rate of 10% per annum, which will be repaid this year. The agreement is subject to approval from shareholders and the TSX Venture Exchange.
‘This transaction provides a strong return on capital invested in these projects and provides a platform for the next stage of growth for Finavera Wind Energy," says Finavera CEO Jason Bak. "Finavera has established itself as an early-stage developer of renewable energy projects up to the point where large-scale capital is required for construction. The incoming cash will be used to pay down debt, aggressively manage our burn rate, and embark on a fiscally prudent review of opportunities in the marketplace within the next two to six months."