Vancouver, British Columbia-based Keewatin Windpower Corp. has entered into a share exchange agreement with Sky Harvest Windpower Corp. and the shareholders of Sky Harvest pursuant to which Keewatin will acquire all of the issued and outstanding shares of the Sky Harvest.
Sky Harvest is a private company incorporated under the laws of Canada in the business of wind power generation. Sky Harvest owns the rights to install and operate wind turbines on over 8,500 acres of land in southwest Saskatchewan.
Additional leases are in negotiation to add over 5,000 acres of land into the facility. Environmental assessment and project engineering has been under way for over two years, and wind assessment data has been collected and analyzed since October 2005.
Pursuant to the terms of the Share Exchange Agreement, each shareholder of Sky Harvest will receive 1.5 shares in the capital of Keewatin for one common share each of Sky Harvest they hold.
In order to minimize any adverse tax consequences for Canadian shareholders of Sky Harvest, these shareholders will receive exchangeable shares of Keewatin's wholly owned Canadian subsidiary Keewatin Windpower Inc. Each share can be exchanged into one Keewatin common share, subject to the terms and conditions of the exchangeable shares.
The purpose of the transaction is to allow the company to continue with its previously stated goal to enhance shareholder value by realigning its business with that of Sky Harvest.
SOURCE: Keewatin Windpower Corp.