Quantum Fuel Systems Technologies Worldwide Inc. – a provider of natural-gas storage systems, integration and vehicle system technologies – says it and its wholly owned subsidiary, Schneider Power Inc., have entered into two separate non-binding letters of intent with unrelated third parties for the sale of Schneider Power's 1.6 MW Providence Bay wind farm, its 10 MW Trout Creek wind farm and certain other Schneider Power development projects.
Provided that the definitive terms are agreed upon, binding agreements are entered into and all closing conditions are satisfied, the sale of the Providence Bay wind farm is expected to close toward the end of this month, and the sale of the Trout Creek and other development assets is expected to close toward the end of April.
Total cash proceeds from these potential transactions, including the return of deposits made with respect to these projects, could be up to C$3.646 million, of which approximately C$1.752 million in cash proceeds is expected to be received in connection with the closings, and the remaining amount is contingent upon the buyers' bringing the development assets into commercial operation.
In addition, the purchaser of the Providence Bay wind farm would assume approximately C$1.1 million in bank debt, and the buyer of the Trout Creek development project would assume C$236,709 of obligations.
Quantum has also received formal offers and letters of interest for Schneider Power's 10 MW Zephyr operational wind farm, its 50 MW development project in the Dominican Republic and its 1 MW development project in the Bahamas. These proposals are currently being evaluated.
‘As previously announced, the company's intent is to completely dispose of all of Schneider Power's operating assets and development projects, and we are making great strides in our efforts to do so,’ says Brian Olson, president of Quantum. ‘We have determined that we can maximize value by selling off individual project assets and are confident that we will be able to monetize these assets, generate meaningful cash proceeds and reduce the amount of debt on our balance sheet over the next six months.’